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 $5.00

Indirect materials 2.50

Maintenance .50

Utilities .30

Fixed overhead costs per month are:

Supervision $1,200

Insurance 400

Property taxes 600

Depreciation 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, 2016, the company incurs the following manufacturing overhead costs:

Indirect labor $28,000

Indirect materials 16,200

Maintenance 2,800

Utilities 1,900

Supervision 1,440

Insurance 400

Property taxes 600

Depreciation 1,860

Instructions

Prepare a flexible budget report, assuming that the company used 6,000 machine hours during August.