Exercise 24-4 flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows. Myers Company uses Indirect labor $1.20 Indirect materials 0.80 Utilities 0.30 Fixed overhead costs per month are Supervision $3,700, Depreciation $1,900, and Property Taxes $600. The company believes it will normally operate in a range 8,500-14,200 direct labor hours per month. Assume that in July 2017, Myers Company incurs the following manufacturing overhead costs. Variable Costs Fixed Costs Indirect labor $14,560 Supervision $3,700 Indirect materials 1,900 9,670 Depreciation Utilities Property taxes 3.220 600 (a) Prepare a flexible budget performance report, assuming that the company worked 12,300 direct labor hours during the month. (List variable costs before fixed costs.) MYERS COMPANY Manu t Report For the Month Ended July 31, 2017 Difference Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs (b) 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.) MYERS COMPANY Manufacturing Overhead Flexible Budget Report For the Month Ended July 31, 2017 Difference Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs