Question
Thome Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows.
Thome Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows. Indirect labor $1.40 Indirect materials 0.70 Utilities 0.40 Fixed overhead costs per month are supervision $4,234, depreciation $1,869, and property taxes $722. The company believes it will normally operate in a range of 5,50010,900 direct labor hours per month. Prepare a monthly manufacturing overhead flexible budget for 2014 for the expected range of activity, using increments of 1,800 direct labor hours
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