Exercise 22-4 Your answer is partially correct. Try again. Myers Company uses a flexible budget for manufecturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows. Indirect labor Indirect materials Utilities $1.00 0.60 0.40 Fixed overhead costs per month are Supervision $3,700, Depreciation $1,800, and Property Taxes $600. The company believes it will normally operate in a range of 7,600-10,900 direct labor hours per month. Assume that in July 2017, Myers Company incurs the following manufacturing overhead costs. Variable Costs Fixed Costs Indirect labor Indirect materials Utilities $9,570 Supervision 5,720 Depreciation 3,520 Property taxes $3,700 1,800 600 (a) Prepare a flexible budget performance report, assuming that the company worked 9,800 direct labor hours during the month. (List variable costs before fixed costs.) MYERS COMPANY Manufacturing Overhead Flexible Budget Report For the Month Ended July 31, 2017 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs Direct Labor Hours Variable Costs Indirect Labor Favorable Indirect Materials Favorable Utilities Favorable Total Variable Costs Favorable Fixed Costs Supervision Neither Favorable nor Unfavorable Depreciation 0 Neither Favorable nor Unfavorable Property Taxes Neither Favorable nor Unfavorable Total Fixed Costs Neither Favorable nor Unfavorable Total Costs Favorable (b) Prepare a flexible budget performance report, assuming that the company worked 9,100 direct labor hours during the month. (List variable costs before fixed costs.) MYERS COMPANY Manufacturing Overhead Flexible Budget Report For the Month Ended July 31, 2017 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs Direct Labor Hours Variable Costs Indirect Labor Unfavorable Indirect Materials Unfavorable Utilities Favorable Total Variable Costs Unfavorable Fixed Costs Supervision Neither Favorable nor Unfavorable Depreciation Neither Favorable nor Unfavorable Property Taxes + Neither Favorable nor Unfavorable Total Fixed Costs Neither Favorable nor Unfavorable Total Costs Unfavorable