Cody Co. developed its annual manufacturing overhead budget for its master budget for 2019 as...
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Cody Co. developed its annual manufacturing overhead budget for its master budget for 2019 as follows: 120,000 Direct Labor Hours $600.000 120.000 50.000 Expected annual operating capacity Variable overhead costs Indirect labor Indirect materials Factory supplies Total variable Fixed overhead costs Depreciation Supervision Property taxes Total fixed Total costs 780.000 240,000 120.000 96,000 456,000 $1,236,000 The relevant range for monthly activity is expected to be between 8.000 and 12.000 direct labor hours. Prepare a flexible budget for a monthly activity level of 8,000 and 9.000 direct labor hours. (List variable costs before fixed CODY CO. Monthly Flexible Manufacturing Overhead Budget Activity level Direct labor hours 8,000 9.000
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