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$1.00Indirect materials0.70Utilities0.40

Fixed overhead costs per month are Supervision $4,000, Depreciation $1,200, and Property Taxes $800. The company believes it will normally operate in a range of7,00010,000direct labor hours per month.

Prepare a monthly manufacturing overhead flexible budget for 2017 for the expected range of activity, using increments of1,000direct labor hours

MYERS COMPANY

Monthly Manufacturing Overhead Flexible Budget

For the Year 2017

Activity Level

Depreciation

Direct Labor Hours

Fixed Costs

Indirect Labor

Indirect Materials

Property Taxes

Supervision

Total Costs

Total Fixed Costs

Total Variable Costs

Utilities

Variable Costs

$