Question & Answer: Exercise 24-3 Myers Company uses a flexible budget for manufacturing overhead based on direct lab…..

Exercise 24-3 Myers 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 $1.40 0.50 0.30 Fixed overhead costs per month are Supervision $4,500, Depreciation $1,300, and Property Taxes $700. The company believes it will normally operate in a range of 7,700- 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 1,300 direct labor hours. (List variable costs before fixed costs.)