Blue Spruce Company uses a flexible budget for manufacturing overhead based on direct labor hours.

Blue Spruce Company uses a flexible budget for manufacturing overhead based on direct labor hours. Budgeted variable manufacturing overhead costs per direct labor hour are as follows. Budgeted fixed overhead costs per monthare Supervision $3,280, Depreciation $984, and property Taxes $656. The company believes it will normally operate in a range of 5,740-8,200 direct labor hours per month. Assume that in July 2022, Blue Spruce Company incurs the following manutacturing overhead costs. (a) Prepare a fleable budget performance report, assuming that the company worked 7,380 direct labor hours during the month. IList variable costs before fued costs.) (a) Prepare a flexible budget performance report, assuming that the company worked 7,350 direct labor hours during the month (Ust vorlable costs before fored corty) BLUE SPRUCE COMPANY Manufacturing Overhead Flexible Budget Report For the Month Ended July 31,2022 Difference Favorable Unfavorable Neither Favorable Budget Actual Costs nor Unfavorable (b) Prepare a flexble budget performance report, assuming that the company worked 6.970 direct labor hours dur ing the month. (L/st variable costs before fued costs) BLUE SPRUCE COMPANY Manufacturing Overhead Flexible Budget Report Difference Favorable Unfavorable Neither Favorable Budget Actual Costs nor Unfavorable