Oriole, Inc uses a flexible budget for manufacturing overhead based on machine hours. Variable manufacturing overhead cost machine hour are as follows: Fixed overhead costs per month are: The company believes it will normally operate in a range of 2,500 to 4,500 machine hours per month. Drenarea flexible manufacturing overhead budget for the expected range of activity using increments of 1,000 machine hours. (List ORIOLE, INC. Monthly Flexible Manufacturing Overhead Budget Activitylevel Machine hours 2,5003,500 4.500 5 $ $