Exercise 23-04 a-b (Video) Waterway Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows. $1.10 Indirect labor Indirect materials Utilities 0.80 0.40 Fixed overhead costs per month are Supervision $4,000, Depreciation $1,300, and Property Taxes $800. The company believes it will normally operate in a range of 7,600-10,600 direct labor hours per month. Assume that in July 2020, Waterway Company incurs the following manufacturing overhead costs. Variable Costs Indirect labor Indirect materials Utilities Fixed Costs $10,330 Supervision 7,540 Depreciation 3,350 Property taxes $4,000 1,300 800 (a) Prepare a flexible budget performance report, assuming that the company worked 9,600 direct labor hours during the month. (List variable costs before fixed costs.) WATERWAY COMPANY Manufacturing Overhead Flexible Budget Report For the Month Ended July 31, 2020 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs $ $ V (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.) (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.) WATERWAY COMPANY Manufacturing Overhead Flexible Budget Report For the Month Ended July 31, 2020 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs $ $ $ Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT VIDEO: STMTI AR EXERCISE