Thome 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 | $1.00 |
| Indirect Materials | $0.60 |
| Utilities | $0.30 |
Fixed overhead costs per month are: Supervision $4,184, Depreciation $1,237, and Property Taxes $582. The company believes it will normally operate in a range of 6,000–9,600 direct labor hours per month.
Prepare a monthly manufacturing overhead flexible budget for 2014 for the expected range of activity, using increments of 1,200 direct labor hours. (List variable costs before fixed costs.)
