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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

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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 Indirect labor Indirect materials Utilities $1.30 0.70 0.40 Fixed overhead costs per month are Supervision $4,300, Depreciation $1,000, and Property Taxes $900. The company believes it will normally operate in a range of 8,200-13,300 direct labor hours per month Prepare a monthly manufacturing overhead flexible budget for 2017 for the expected range of activity, using increments of 1,700 direct labor hours. (List variable costs before fixed costs.) MYERS COMPANY Monthly Manufacturing Overhead Flexible Budget For the Year 2017 Activity Level Direct Labor Hours 8200 9900 11600 13300 Variable Costs Indirect Labor 10660 12870 15080 17290 Indirect Materials Utilities Total Variable Costs Fixed Costs Supervision Depreciation Property Taxes Total Fixed Costs Total Costs

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