Your answer is partially correct Culver 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 Indirect materials Utilities $1.00 0.50 0.30 Fixed overhead costs per month are Supervision $4,200, Depreciation $1,800, and Property Taxes $600. The company believes it will normally operate in a range of 5,900-11,900 direct labor hours per month Prepare a monthly manufacturing overhead flexible budget for 2017 for the expected range of activity, using increments of 2,000 direct labor hours. (List variable costs before fixed costs) CULVER COMPANY Monthly Manufacturing Overhead Flexible Budget For the Month 2017 Monthly Manufacturing Overhead Flexible Budget For the Month 2017 Variable Costs 11900 5900 Indirect Labor $ 590000 $ 790000 $ 990000 1190000 Indirect Materials 295000 395000 495000 595000 Utilities 177000 237000 297000 357000 Total Variable Costs 1062000 1422000 1782000 2142000 Fixed Costs Supervision 420000 420000 420000 420000 Depreciation 180000 180000 180000 180000 Property Taxes 60000 60000 60000 60000 Total Fixed Costs 660000 660000 660000 660000 Total Costs 1722000 2082000 $ 2442000 2802000