Glenda Company uses a flexible budget for manufacturing overhead based on direct labor hours. For 2020, the master overhead budget for the Packaging Department based on 300,000 direct labor hours was as follows. 

Prepare flexible budget report.

 

---

                             

Variable Costs			Fixed Costs
Indirect labor	$360,000		Supervision	$ 60,000
Supplies and lubricants	150,000		Depreciation	24,000
Maintenance	210,000		Property taxes	18,000
Utilities	120,000		Insurance	12,000
	$840,000			$114,000

 

During July, 24,000 direct labor hours were worked. The company incurred the following variable costs in July: indirect labor $30,200, supplies and lubricants $11,600, maintenance $17,500, and utilities $9,200. Actual fixed overhead costs were the same as monthly budgeted fixed costs.

 

Instructions

 

Prepare a flexible budget report for the Packaging Department for July.