Using the information in E22-3, assume that in July 2014, Thome Company incurs the following manufacturing overhead costs.

Variable Costs Fixed Costs Indirect labor $8,800 Supervision $4,000 Indirect materials 5,300 Depreciation 1,200 Utilities 3,200 Property taxes 800 Instructions

(a) Prepare a fl exible budget performance report, assuming that the company worked 9,000 direct labor hours during the month.

(b) Prepare a fl exible budget performance report, assuming that the company worked 8,500 direct labor hours during the month.

(c) Comment on your fi ndings.

AppendixLO1