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Penske Brothers Fuel Injector Company uses a flexible budget for manufacturing overhead based on machine hours. Variable manufacturing overhead costs per machine hour are as
Penske Brothers Fuel Injector Company uses a flexible budget for manufacturing overhead based on machine hours. Variable manufacturing overhead costs per machine hour are as follows: Indirect labor $5.25 Indirect materials $1.30 Maintenance $.55 Utilities $.75 Fixed overhead costs per month are: Supervision $3,100 Insurance $1,020 Property taxes $1,660 Depreciation $1,200 The company believes it will normally operate in a range of 3,000 to 5,000 machine hours per month. Required Prepare a flexible manufacturing overhead budget for the expected range of activity, using increments of 1,000 machine hours
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