Exercise 23-04 a-b (Video) Sheffield Company unes a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows Indirect labor $1.30 Indirect materials 0.80 Utilities 0.30 Fixed overhead costs per month are Supervision $4,300, Depreciation $2,000, and Property Taxes $600. The company believes it will normally operate in a range of 6,100-10,000 direct labor hours per month Assume that in July 2020, Sheffield Company Incurs the following manufacturing overhead costs. Variable Costs Fixed Costs Indirect labor $11,050 Supervision Indirect materials 6,790 Depreciation 2.000 Us 2.180 Property taxes 600 (*) Prepare a flexible budget performance report, suming that the company worked 8,700 direct labor hours during the month (st variable costs before fived cote.) SHEFFIELD COMPANY Manufacturing Overhead Flexible Budget Report For the Month Ended July 21, 2020 Difference Favorite Unfavorable Neither Favorite Actual Costs ner Unfavorable 54.300 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs cy Policy | R 2000-2021ohn Wiley & Sons, Inc. All Rights Reserved. A Diviinnfinn www.CARRY (b) Prepare a flexible budget performance report, assuming that the company worked 8,100 direct labor hours during the month. (List variable costs SHEFFIELD COMPANY Manufacturing Overhead Flexible Budget Report For the Month Ended July 31, 2020 Difference Favorable Unfavorable Neither Favorable Budget Actual Costs nor Unfavorable : . Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs