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Exercise 22-4 Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are

Exercise 22-4 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 0.70

Utilities 0.40

Fixed overhead costs per month are Supervision $4,100, Depreciation $2,000, and Property Taxes $500. The company believes it will normally operate in a range of 7,10012,800 direct labor hours per month. Assume that in July 2017, Myers Company incurs the following manufacturing overhead costs.

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(a.) Prepare a flexible budget performance report, assuming that the company worked 10,900 direct labor hours during the month. (List variable costs before fixed costs.) image text in transcribed(b) Prepare a flexible budget performance report, assuming that the company worked 10,300 direct labor hours during the month. (List variable costs before fixed costs.)

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Variable Costs Fixed Costs Indirect labor Indirect materials Utilities $4,100 2,000 500 $11,710 Supervision 7,460 Depreciation 3,860 Property taxes Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs

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