1 View Policies Current Attempt in Progress Crane Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows. $1.00 Indirect labor Indirect materials Utilities 0.50 0.30 Fixed overhead costs per month are Supervision $3,500, Depreciation $1.000, and Property Taxes $500. The company believes it will normally operate in a range of 5,500-8,500 direct labor hours per month Assume that in July 2020, Crane Company incurs the following manufacturing overhead costs. Variable Costs Fixed Costs Indirect labor $7.300 Supervision $3.500 Indirect materials Depreciation 1.000 Utilities 1.850 Property taxes 500 3.650 (a) Prepare a fleable budget performance report, assuming that the company worked 7.500 direct labor hours during the month. (List variable costs before foed costs.) STORE Manufacturing Overhead Flexible Budget Report For the Month Ended July 31, 2020 Difference Favorable Unfavorable Neither Favorable norint vorable Budget Actual Costs (b) Prepare a flexible budget performance report, assuming that the company worked 7,000 direct labor hours during the month. (Lise variable costs before foxed costs.) CRANE COMPANY Manufacturing Overhead Flexible Budget Report For the Month Ended July 31, 2020 Differer Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs $ $