Sheridan Company uses a flexible budget for manufacturing overhead that is based on direct labour hours. The variable manufacturing overhead costs per direct labour hour are as follows:

Indirect labour

$$0\mathrm{.}80$

Indirect materials

$0\mathrm{.}60$

Utilities

$0\mathrm{.}20$

Fixed overhead costs per month are as follows: supervision $$3\mathrm{.}700$; depreciation $$1\mathrm{.}200$; and property taxes $$800.$ The company believes it will normally operate in a range of $6,100$ to $9,700$ direct labour hours per month.

Assume that in July $2022,$ Sheridan Company incurs the following manufacturing overhead costs:

Variable Costs

Fixed Costs

Indirect labour

$$6\mathrm{.}560$

Supervision

$$3\mathrm{.}700$

Indirect materials

$4,940$

Depreciation

$3,000$

Utilities

$1,240$

Property taxes

$800$