Is been recorded in the Gradebook Wed, Jun 24, 2020.6:08:32 PM (America/Vancouver -07:00) --/5 Question 19 View Policies Current Attempt in Progress Myers 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 $1.00 Indirect materials 0.60 Utilities 0.40 Fixed overhead costs per month are Supervision $4,000, Depreciation $1.200, and Property Taxes $800. The company believes it will normally operate in a range of 7,000-10,000 direct labor hours per month. Assume that in July 2017, Myers Company incurs the following manufacturing overhead costs. Variable Costs Fixed Costs Indirect labor $8,800 Supervision $4,000 Indirect materials 5,300 Depreciation 1,200 Utilities 3,200 Property taxes 800 MYERS COMPANY Manufacturing Overhead Flexible Budget Report For the Month Ended July 31, 2017 Difference Favorable F Budget Actual Costs Unfavorable U Direct labor hours (DLH) 9.000 DLH 9,000 DLH MacBook Air Utilities 1,200 3,200 Property taxes 800 MYERS COMPANY Manufacturing Overhead Flexible Budget Report For the Month Ended July 31, 2017 Difference Favorable F Budget Actual Costs Unfavorable U Direct labor hours (DLH) 9,000 DLH 9,000 DLH Variable costs Indirect labor $9,000 $8,800 $200 F Indirect materials 6,300 5,800 500 F Utilities 3,600 3,200 400 F Total variable costs 18,900 17,800 1,100 F Fixed costs Supervision 4,000 4,000 Depreciation 1,200 1,200 Property taxes 800 800 Total fixed costs 6,000 Total costs $24,900 $23,800 $1,100F 6,000 MYERS COMPANY Manufacturing Overhead Flexible Budget Report For the Month Ended July 31, 2017 Difference MYERS COMPANY Manufacturing Overhead Flexible Budget Report For the Month Ended July 31, 2017 Difference Favorable F Budget Actual Costs Unfavorable U Direct labor hours (DLH) 8,500 DLH 8.500 DLH Variable costs Indirect labor ($1.00) $8,500 $8,800 $300 U Indirect materials ($0.70) 5,950 150 F Utilities ($0.40) 3,400 3,200 200 F Total variable costs ($2.10) 17,850 17,800 50 F Fixed costs Supervision 4,000 4,000 Depreciation 1,200 800 Property taxes Total fixed costs $23,850 $23,800 $50 F Total costs 5,800 1.200 800 6.000 6,000 Comment on the findings of manufacturing overhead flexible budget report using the two different direct labor hours 9.000 and 8,500 I! 2 I. w E T T O Words MacBook Air