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Bumblebee Company estimates that 318,000 direct labor hours will be worked during the coming year, 2020,...

Bumblebee Company estimates that 318,000 direct labor hours will be worked during the coming year, 2020, in the Packaging Department. On this basis, the following budgeted manufacturing overhead cost data are computed for the year.

Fixed Overhead Costs

Variable Overhead Costs

Supervision

$93,960

Indirect labor

$152,640

Depreciation

69,120

Indirect materials

89,040

Insurance

30,720

Repairs

31,800

Rent

20,760

Utilities

47,700

Property taxes

13,440

Lubricants

15,900

$228,000

$337,080


It is estimated that direct labor hours worked each month will range from 22,500 to 33,900 hours.

During October, 22,500 direct labor hours were worked and the following overhead costs were incurred.

Fixed overhead costs: Supervision $7,830, Depreciation $5,760, Insurance $2,510, Rent $1,730, and Property taxes $1,120.

Variable overhead costs: Indirect labor $11,890, Indirect materials, $5,920, Repairs $2,170, Utilities $3,775, and Lubricants $1,415.

(a) Prepare a monthly manufacturing overhead flexible budget for each increment of 3,800 direct labor hours over the relevant range for the year ending December 31, 2020. (List variable costs before fixed costs.)

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