Malone Company estimates that 360,000 direct labor hours will be worked during the coming year, 2008, in the Packaging Department.

Malone Company estimates that 360,000 direct labor hours will be worked during the coming year, 2008, 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 Supervision $ 90,000 Indirect labor $126,000 Depreciation 60,000 Indirect materials 90,000 Insurance 30,000 Repairs 54,000 Rent 24,000 Utilities 72,000 Property taxes 18,000 Lubricants 18,000   $222,000   $360,000   It is estimated that direct labor hours worked each month will range from 27,000 to 36,000 hours.During October, 27,000 direct labor hours were worked and the following overhead costs were incurred. Fixed overhead costs: Supervision $7,500, Depreciation $5,000, Insurance $2,470, Rent $2,000, and Property taxes $1,500. Variable overhead costs: Indirect labor $10,360, Indirect materials, $6,400, Repairs $4,000, Utilities $5,700, and Lubricants $1,640. Hint: Prepare flexible budget and budget report for manufacturing overhead.Instructions (a)   Prepare a monthly manufacturing overhead flexible budget for each increment of 3,000 direct labor hours over the relevant range for the year ending December 31, 2008.(b)   Prepare a flexible budget report for October.

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