Question
Webb, Inc. uses a flexible budget for manufacturing overhead based on machine hours. Variable manufacturing overhead costs per machine hour are as follows: Indirect labor
Webb, Inc. uses a flexible budget for manufacturing overhead based on machine hours. Variable manufacturing overhead costs per machine hour are as follows: Indirect labor Indirect materials Maintenance Utilities Fixed overhead costs per month are: $5.00 2.50 .50 .30 Supervision Insurance Property taxes Depreciation $1,200 400 600 1,800 The company believes it will normally operate in a range of 4,000 to 8,000 machine hours per month. During the month of August, 2019, the company incurs the following manufacturing overhead costs: Indirect labor Indirect materials Maintenance Utilities Supervision $28,000 16,200 2,800 1,900 1,440 Insurance Property taxes Depreciation Instructions 400. 600 1,860 Prepare a flexible budget report, assuming that the company used 6,000 machine hours during August
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