Berne Inc Uses a Flexible Budget for Manufacturing Overhead Based on on Machine

Berne Inc. uses a flexible budget for manufacturing overhead based on machine hours. Variable manufacturing overhead costs per machine hour are as follows: $\begin{array}{lr}\text { Indirect labor } & \$ 5.00 \\\text { Indirect materials } & 2.50 \\\text { Maintenance } & .80 \\\text { Utilities } & .30\\\text { Fixed overhead costs per month are: }\\\text { Supervision } & \$ 800 \\\text { Insurance } & 200 \\\text { Property taxes } & 300 \\\text { Depreciation } & 900\end{array}$ The company believes it will normally operate in a range of 2000 to 4000 machine hours per month.
Instructions
Prepare a flexible manufacturing overhead budget for the expected range of activity using increments of 1000 machine hours.

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