E10.4 Prepare flexible budget reports for manufacturing overhead costs, and comment on findings 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. $ 1.00 Indirect labor Indirect materials Utilities 0.70 0.40 Fixed overhead costs per month are supervision $4,000, depreciation $1,200, and property taxes $800. The company believes it will normally operate in a range of 7,000-10,000 direct labor hours per month. In July 2022, Myers Company incurs the following manufacturing overhead costs. $ Variable Costs Indirect labor Indirect materials Utilities 8,800 5,800 3,200 Fixed Costs Supervision $ Depreciation Property taxes 4,000 1,200 800 Instructions a. Prepare a flexible budget performance report, assuming that the company worked 9,000 direct labor hours during the month. b. Prepare a flexible budget performance report, assuming that the company worked 8,500 direct labor hours during the month. C. Comment on your findings NOTE: Enter a formula, a cell reference, or a value (if you are unable to reference a cell), into the yellow shaded input cells. a. a MEYERS COMPANY Manufacturing Overhead Flexible Budget Report For the Month Ended July 31, 2020 Budget at 9.000 DLH Actual Costs 9.000 DLH Difference Favorable F Unfavorable U Direct labor hours (DLH) Variable costs Indirect labor Indirect materials Utilities Total variable costs Fixed costs Supervision Depreciation Property taxes Total fixed costs Total costs b. b. MEYERS COMPANY Manufacturing Overhead Flexible Budget Report For the Month Ended July 31, 2022 Budget at 8,500 DLH Actual Costs 8.500 DLH Difference Favorable F Unfavorable U Direct labor hours (DLH) Variable costs Indirect labor Indirect materials Utilities Total variable costs Fixed costs cos Supervision Depreciation Property taxes Total fixed costs Total costs C. Comment on your findings