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Current Attempt in Progress Grouper Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor
Current Attempt in Progress Grouper 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 $1.00 Indirect materials 0.70 Utilities 0.40 Fixed overhead costs per month are Supervision $3,680, Depreciation $ 1,104, and property Taxes $ 736. The company believes it will normally operate in a range of 6,440-9,200 direct labor hours per month. Assume that in July 2022, Grouper Company incurs the following manufacturing overhead costs. Variable Costs Fixed Costs Indirect labor $ 8,096 Supervision $ 3,680 Indirect materials 5,336 Depreciation 1,104 Utilities 2,944 Property taxes 736 (a) Prepare a flexible budget performance report, assuming that the company worked 8,280 direct labor hours during the month. (List variable costs before fixed costs.) Manufacturing Overhead Flexible Budget Report Difference Favorable Unfavorabl Neither Favor nor Unfavora Budget Actual Costs $ $ $ $ $ Manufacturing Overhead Flexible Budget Report Difference Favorable Unfavorab Neither Favor nor Unfavora Budget Actual Costs $ $ $ $ $ $
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