Question 4

Crane Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows: Fixed overhead costs per month are Supervision $3,600, Depreciation $1,300, and Property Taxes $800. The company believes it will normally operate in a range of 7.10011.000 direct labor hours per month. Prepare a inonthly manufacturing overhead flexible budget for 2022 for the expected range of activity, using increments: of 1,300 direct labor hours. (List variable costs before foved costs)