Cook Company estimates that 362,200 direct labor hours will be worked during the coming year, 2014, 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
It is estimated that direct labor hours worked each month will range from 22,600 to 31,900 hours.
During October, 22,600 direct labor hours were worked and the following overhead costs were incurred.
Prepare a monthly manufacturing overhead flexible budget for each increment of 3,100 direct labor hours over the relevant range for the year ending December 31, 2014.(List variable costs before fixed costs.)