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

Webb Inc. uses a flexible budget for manufacturing overhead based on machine hours. Variable manufacturing overhead costs per machine hour are as follows: $\begin{array}{lr}\text { Indirect labor } & \$ 5.00 \\\text { Indirect materials } & 2.50 \\\text { Maintenance } & .50 \\\text { Utilities } & .30\\\text { Fixed overhead costs per month are: }\\\text { Supervision } & \$ 1,200 \\\text { Insurance } & 400 \\\text { Propery taxes } & 600 \\\text { Depreciation } & 1,800\end{array}$ The company believes it will normally operate in a range of 4000 to 8000 machine hours per month. During the month of August 2016 the company incurs the following manufacturing overhead costs: $$\begin{array} { l r } \text { Indirect labor } & \$ 28,000 \\\text { Indirect materials } & 16,200 \\\text { Maintenance } & 2,800 \\\text { Utilities } & 1,900 \\\text { Supervision } & 1,440 \\\text { Insurance } & 400 \\\text { Property taxes } & 600 \\\text { Depreciation } & 1,860\end{array}$$ Instructions
Prepare a flexible budget report assuming that the company used 6000 machine hours during August.

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