Prepare a monthly overhead performance report. (Obj. 6). A portion of the flexible budget for overhead of the Erection Department of Riners Company for 19X9 is shown.

Variable Cost Element Item Per Hour Indirect Labor $.80 Power .40 TOTAL BUDGETED COST AT Fixed 90% of 100% of 110% of Cost Element Capacity Capacity Capacity

$36,000 $108,000 $116,000 $124,000 1,200 33,200 41,200 45,200 Capacity is 120,000 direct labor hours. Production is expected to be equal during each month of the year. In July, a total of 8,400 hours were worked. Indirect labor costs were $1 1,200 and power costs were

$3,700.

Compute the budgeted amount for these two elements of cost based on the actual volume achieved in the month, and compute the amount by which actual costs were over (or under) this budgeted amount.

LO.1