Exercise 23-04 a-b (Video) Sheffield 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 $1.30 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 6,790 2,180 Indirect materials Supervision Depreciation Property taxes $4,300 2,000 Utilities 600 (a) Prepare a flexible budget performance report, assuming that the company worked 8,700 direct labor hours during the month. (List variable costs before fixed costs.) SHEFFIELD COMPANY Manufacturing Overhead Flexible Budget Report For the Month Ended July 31, 2020 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs $ (b) Prepare a flexible budget performance report, assuming that the company worked 8,100 direct labor hours during the month. (List variable costs before fixed costs.) SHEFFIELD COMPANY Manufacturing Overhead Flexible Budget Report For the Month Ended July 31, 2020 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs $ $ >