Oriole Co, developed its annual manufacturing overhead budget for its master budget for 2022 as follows:
Expected annual operating capacity
120,500Direct
Labor Hours
Variable overhead costs
Indirect labor
$602,500
Indirect materials
120,500
Factory supplies
60,250
Total variable
783,250
Fixed overhead costs
Depreciation
243,000
Supervision
123,000
Property taxes
99,000
Total fixed
465,000
Total costs
$1,248,250
The relevant range for monthly activity is expected to be between 8,500 and 12,000 direct labor hours.
Prepare a flexible budget for a monthly activity level of 8,500 and 9,500 direct labor hours. (List variable costs before fixed costs.)
ORIOLECO.
Monthly Flexible Manufacturing Overhead Budget
Activity level
Direct labor hours
$
8,500
$
9,500