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Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows:
Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows:
Indirect labor | $1.00 | |
Indirect materials | 0.70 | |
Utilities | 0.20 |
Fixed overhead costs per month are Supervision $4,100, Depreciation $1,900, and Property Taxes $700. The company believes it will normally operate in a range of 7,30010,900 direct labor hours per month. Prepare a monthly manufacturing overhead flexible budget for 2020 for the expected range of activity, using increments of 1,200 direct labor hours.
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