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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: $5.00 Indirect
Sheridan, Inc uses a flexible budget for manufacturing overhead based on machine hours. Variable manufacturing overhead costs per machine hour are as follows: $5.00 Indirect labor 2.50 Indirect materials 0.50 Maintenance Utilities 0.30 Fixed overhead costs per month are: $1,380 Supervision Insurance 580 Property taxes 780 Depreciation 2,130 The company believes it will normally operate in a range of 5,800 to 9.800 machine hours per month. During the month of August, 2022, the company incurs the following manufacturing overhead costs: Indirect labor $36,660 Indirect materials 21,060 Maintenance 3,640 Utilities 2,470 Supervision 1,620 Insurance 580 Property taxes 780 Depreciation 2,220 Prepare a flexible budget report, assuming that the company used 7,800 machine hours during August. (List variable costs before fixed costs.)
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