The annual manufacturing overhead budget for its master budget for $2024$ as follows:

Expected annual operating capacity

$240,000$ Direct Labor Hours

Variable overhead costs

Indirect labor

$$840,000$

Indirect materials

$180,000$

Factory supplies

$60,000$

Total variable

$1,080,000$

Fixed overhead costs

Depreciation

$360,000$

Supervision

$240,000$

Property taxes

$120,000$

Total fixed

$720,000$

Total costs

$$1,800,000$

The relevant range for monthly activity is expected to be between $16,000$ and $24,000$ direct labor hours.

Instructions

Prepare a flexible budget for a monthly activity level of $16,000$ direct labor hours.

You MUST use the same format as the problem.