Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours.
Indirect labor $1.20
Indirect materials 0.60
Utilities 0.40
Fixed overhead costs per month are Supervision $4,000, Depreciation $1,600, and Property Taxes $800. The company believes it will normally operate in a range of 6,200- 11,600 direct labor hours per month. Prepare a monthly manufacturing overhead flexible budget for 2017 for the expected range of activity, using increments of 1,800 direct labor hours.
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Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours.
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