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.

Prepare flexible manufacturing overhead budget.

Indirect labor	$1.00
Indirect materials	0.70
Utilities	0.40

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 of 7,00010,000 direct labor hours per month.

	Myers Company
	Monthly Manufacturing Flexible Overhead Budget
	For the Year 2020
1	Activity level
2	Direct labor hours			7,000	8,000	9,000	10,000
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