Fixed overhead costs per month are supervision 3768

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Thome Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows.

Indirect labor
$1.30
Indirect materials
0.80
Utilities
0.30

Fixed overhead costs per month are: Supervision $3,768, Depreciation $1,594, and Property Taxes $840. The company believes it will normally operate in a range of 6,300-12,000 direct labor hours per month.

Assume that in July 2014, Thome Company incurs the following manufacturing overhead costs.

Variable Costs


Fixed Costs

Indirect labor
$12,892
Supervision
$3,768
Indirect materials
7,923
Depreciation
1,594
Utilities
2,557
Property taxes
840

Reference no: EM13571380

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