Martinez 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.

Indirect labor		$1.00
Indirect materials		0.70
Utilities		0.40

Budgeted fixed overhead costs per month are Supervision $3,840, Depreciation $1,152, and property Taxes $768. The company believes it will normally operate in a range of 6,7209,600 direct labor hours per month. Assume that in July 2022, Martinez Company incurs the following manufacturing overhead costs.

Variable Costs				Fixed Costs
Indirect labor		$8,448		Supervision		$3,840
Indirect materials		5,568		Depreciation		1,152
Utilities		3,072		Property taxes		768

(a) Prepare a flexible budget performance report, assuming that the company worked 8,640 direct labor hours during the month. (List variable costs before fixed costs.)

MARTINEZ COMPANY Manufacturing Overhead Flexible Budget Report choose the accounting period July 31, 2022For the Month Ended July 31, 2022For the Year Ended July 31, 2022
						Difference
		Budget		Actual Costs		Favorable Unfavorable Neither Favorable nor Unfavorable
select an item Direct Labor HoursFixed CostsIndirect LaborVariable CostsSupervisionTotal CostsProperty TaxesTotal Variable CostsUtilitiesDepreciationTotal Fixed CostsIndirect Materials		enter a number of hours		enter a number of hours
select an opening name for section one SupervisionIndirect LaborDepreciationTotal CostsTotal Variable CostsTotal Fixed CostsFixed CostsProperty TaxesVariable CostsUtilitiesDirect Labor HoursIndirect Materials
select an item Fixed CostsTotal CostsTotal Fixed CostsProperty TaxesVariable CostsDepreciationDirect Labor HoursTotal Variable CostsIndirect LaborUtilitiesSupervisionIndirect Materials		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount	select an option FavorableUnfavorableNeither Favorable nor Unfavorable
select an item Direct Labor HoursFixed CostsSupervisionVariable CostsTotal CostsTotal Fixed CostsDepreciationIndirect LaborUtilitiesTotal Variable CostsIndirect MaterialsProperty Taxes		enter a dollar amount		enter a dollar amount		enter a dollar amount	select an option UnfavorableFavorableNeither Favorable nor Unfavorable
select an item SupervisionIndirect LaborDirect Labor HoursProperty TaxesDepreciationUtilitiesFixed CostsTotal CostsVariable CostsTotal Fixed CostsIndirect MaterialsTotal Variable Costs		enter a dollar amount		enter a dollar amount		enter a dollar amount	select an option UnfavorableNeither Favorable nor UnfavorableFavorable
select a closing name for section one UtilitiesTotal Fixed CostsTotal Variable CostsDirect Labor HoursSupervisionVariable CostsFixed CostsDepreciationIndirect LaborTotal CostsIndirect MaterialsProperty Taxes		enter a total amount for section one		enter a total amount for section one		enter a dollar amount	select an option FavorableNeither Favorable nor UnfavorableUnfavorable
select an opening name for section two Fixed CostsTotal Fixed CostsTotal CostsProperty TaxesDepreciationSupervisionIndirect LaborVariable CostsIndirect MaterialsTotal Variable CostsDirect Labor HoursUtilities
select an item Property TaxesSupervisionIndirect LaborIndirect MaterialsTotal CostsTotal Fixed CostsDirect Labor HoursVariable CostsFixed CostsTotal Variable CostsUtilitiesDepreciation		enter a dollar amount		enter a dollar amount		enter a dollar amount	select an option UnfavorableNeither Favorable nor UnfavorableFavorable
select an item Indirect LaborProperty TaxesFixed CostsDirect Labor HoursTotal CostsDepreciationSupervisionUtilitiesIndirect MaterialsTotal Variable CostsTotal Fixed CostsVariable Costs		enter a dollar amount		enter a dollar amount		enter a dollar amount	select an option UnfavorableNeither Favorable nor UnfavorableFavorable
select an item DepreciationUtilitiesIndirect MaterialsProperty TaxesTotal Variable CostsSupervisionIndirect LaborFixed CostsTotal Fixed CostsDirect Labor HoursTotal CostsVariable Costs		enter a dollar amount		enter a dollar amount		enter a dollar amount	select an option FavorableUnfavorableNeither Favorable nor Unfavorable
select a closing name for section two Indirect LaborDepreciationUtilitiesTotal Fixed CostsTotal Variable CostsIndirect MaterialsProperty TaxesTotal CostsDirect Labor HoursVariable CostsFixed CostsSupervision		enter a total amount for section two		enter a total amount for section two		enter a dollar amount	select an option UnfavorableFavorableNeither Favorable nor Unfavorable
select a closing name for this report Total Variable CostsFixed CostsIndirect MaterialsTotal Fixed CostsSupervisionProperty TaxesTotal CostsUtilitiesDepreciationIndirect LaborVariable CostsDirect Labor Hours		$enter a total amount for this report		$enter a total amount for this report		$enter a total amount	select an option Neither Favorable nor UnfavorableFavorableUnfavorable