Question

Sheffield Company estimates that 337,700 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		$88,200		Indirect labor		$155,342
Depreciation		72,000		Indirect materials		74,294
Insurance		29,760		Repairs		67,540
Rent		24,360		Utilities		67,540
Property taxes		13,080		Lubricants		16,885
		$227,400				$381,601

It is estimated that direct labor hours worked each month will range from 21,500 to 29,600 hours.

During October, 21,500 direct labor hours were worked and the following overhead costs were incurred.

Fixed overhead costs: Supervision $7,350, Depreciation $6,000, Insurance $2,450, Rent $2,030, and Property taxes $1,090.

Variable overhead costs: Indirect labor $10,920, Indirect materials, $4,320, Repairs $4,240, Utilities $4,630, and Lubricants $1,365.

(a) Prepare a monthly manufacturing overhead flexible budget for each increment of 2,700 direct labor hours over the relevant range for the year ending December 31, 2020. (List variable costs before fixed costs.)