Company uses a flexible budget for manufacturing overhead based on machine hou

Company 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 1.50

Utilities .30

Fixed overhead costs per month are:

Supervision $800

Insurance 200

Property taxes 300

Depreciation 900

The company believes it will normally operate in a range of 2000 to 4000 machine hours per month. During the month of August 2010 the company incurs the
following manufacturing overhead costs:

Indirect labor $14000

Indirect materials 8100

Maintenance 4400

Utilities 950

Supervision 720

Insurance 200

Property taxes 300

Depreciation 930

Instructions

Prepare a flexible budget report assuming that the company used 3000 machine hours during August.