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Oriole, Inc. uses a flexible budget for manufacturing overhead based on machine hours. Variable manufacturing overhead costs per machine hour are as follows: Indirect
Oriole, Inc. uses a flexible budget for manufacturing overhead based on machine hours. Variable manufacturing overhead costs per machine hour are as follows: Indirect labor Indirect materials Maintenance. Utilities. $5.00 2.50 0.50 0.30 Fixed overhead costs per month are: Supervision Insurance Property taxes Depreciation $1,250 450 650 1,850 The company believes it will normally operate in a range of 4,500 to 8,500 machine hours per month. During the month of August, 2022, the company incurs the following manufacturing overhead costs: Indirect labor $30,550 Indirect materials 17,550 Maintenance 3,030 Utilities 2,060 Supervision 1,540 Insurance 450 Property taxes 650 Depreciation 1,960 Prepare a flexible budget report, assuming that the company used 6,500 machine hours during August. (List variable costs before fixed costs.)
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