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 |
$1.10 |
| Indirect materials |
0.70 |
| Utilities |
0.20 |
Fixed overhead costs per month are Supervision $4,000, Depreciation $1,500, and Property Taxes $700. The company believes it will normally operate in a range of 6,400-10,000 direct labor hours per month.
Prepare a monthly manufacturing overhead flexible budget for 2017 for the expected range of activity, using increments of 1,200 direct labor hours. (List variable costs before fixed costs.)