Cullumber Co. developed its annual manufacturing overhead budget for its master budget for 2022 as follows: Expected annual operating capacity Variable overhead costs Indirect labor Indirect materials Factory supplies Fixed overhead costs Depreciation Supervision Property taxes Total costs Total variable Total fixed 121,400Direct Labor Hours $607,000 121,400 60,700 789,100 252,000 132,000 108,000 492,000 $1,281,100 The relevant range for monthly activity is expected to be between 9,400 and 12.000 direct labor hours.

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Management by Exception

A manager’s job is a very tough one. A manager needs to look at the various areas of work and as a manager he has to look after two or more important jobs or activities at the same time for the growth of the business. In order to do all these things in an effective manner, a manager must adopt or practice different management styles and tactics.