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Sheridan, Inc. uses a flexible budget for manufacturing overhead based on machine hours. Variable manufacturing overhead costs per machine hour are as follows: Indirect
Sheridan, Inc. uses a flexible budget for manufacturing overhead based on machine hours. Variable manufacturing overhead costs per machine hour are as follows: Indirect labor $5.00 Indirect materials 2.50 Maintenance 0.80 Utilities 0.30 Fixed overhead costs per month are: Supervision $870 Insurance 270 Property taxes 370 Depreciation 970 The company believes it will normally operate in a range of 2.700 to 4,700 machine hours per month. Prepare a flexible manufacturing overhead budget for the expected range of activity using increments of 1,000 machine hours. (List variable costs before fixed costs.)
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