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Indigo Company uses a flexible budget for manufacturing overhead based on direct labor hours. Budgeted variable manufacturing overhead costs per direct labor hour are as
Indigo Company uses a flexible budget for manufacturing overhead based on direct labor hours. Budgeted variable manufacturing overhead costs per direct labor hour are as follows. Budgeted fixed overhead costs per month are Supervision $4,800, Depreciation $1,440, and property Taxes $960. The company believes it will normally operate in a range of 8,40012,000 direct labor hours per month. Assume that in July 2022, Indigo Company incurs the following manufacturing overhead costs. (a) Prepare a flexible budget performance report, assuming that the company worked 10,800 direct labor hours during the month. (List variable costs before fixed costs.) (a) Prepare a flexible budget performance report, assuming that the company worked 10,800 direct labor hours during the month. (List (b) Prepare a flexible budget performance report, assuming that the company worked 10,200 direct labor hours during the month. (List variable costs before fixed costs.) INDIGO COMPANY Manufacturing Overhead Flexible Budget Report ActualCostsFavor;UnfavoNeitherFcnorUnfarDifferi $ $ $
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