Exercise 22-4 Thome 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 $1.50 Indirect materials 0.80 Utilities 0.30 Fixed overhead costs per month are supervision $3,650, depreciation $1,195, and property taxes $519. The company believes it will normally operate in a range of 8,200-13,300 direct labor hours per month. Assume that in July 2014, Thome Company incurs the following manufacturing overhead costs. Variable Costs Fixed Costs Indirect labor $17,165 Supervision $3,650 Indirect material 1,195 9,150 Depreciation Utilities 3,063 Property taxes 519 Z Your answer is partially correct. Try again Prepare a flexible budget performance report, assuming that the company worked 11,600 direct labor hours during the month. (List variable costs before fixed costs.)