Question
13 Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are
13 Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows. Indirect labor $1.10 Indirect materials 0.50 Utilities 0.40 Fixed overhead costs per month are Supervision $3,900, Depreciation $1,100, and Property Taxes $700. The company believes it will normally operate in a range of 5,900-9,800 direct labor hours per month. Assume that in July 2020, Myers Company incurs the following manufacturing overhead costs. Variable Costs Fixed Costs Indirect labor $9,050 Supervision $3,900 Indirect materials 4,070 Depreciation 1,100 Utilities 2,990 Property taxes 700 (a) Prepare a flexible budget performance report, assumine that th variable costs before fived arts 1
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