Bumblebee Company estimates that 403,000 direct labor hours will be worked during the coming year, 2017, in the Packaging Department. On this basis, the budgeted manufacturing overhead cost data are computed for the year. Fixed Overhead Costs Variable Overhead Costs Supervision $94,920 Indirect labor $161,200 Depreciation 66,360 Indirect materials 112,840 Insurance 29,760 Repairs 80,600 Rent 29,400 Utilities 100,750 Property taxes 22,560 Lubricants 24,180 $243,000 $479,570 It is estimated that direct labor hours worked each month will range from 29,800 to 36,100 hours. During October, 29,800 direct labor hours were worked and the following overhead costs were incurred. Fixed overhead costs: Supervision $7,910, Depreciation $5,530, Insurance $2,435, Rent $2,450, and Property taxes $1,880. Variable overhead costs: Indirect labor $13,010, Indirect materials, $7,924, Repairs $5,910, Utilities $7,890, and Lubricants $2,098.
(a) Prepare a monthly manufacturing overhead flexible budget for each increment of 2,100 direct labor hours over the relevant range for the year ending December 31, 2017.
(b) Prepare a flexible budget report for October. (List variable costs before fixed costs.)