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. ndirect labor $1.30 Indirect materials 0.90 Utilities 0.40 Fixed overhead costs per month are Supervision $4300, Depreciation $1900, and Property Taxes $500. The company believes it will normally operate in a range of 6400-9400 direct labor hours per month. Assume that in July 2017, Myers Company incurs the following manufacturing overhead costs Variable Costs Fixed Costs $10670 Supervision $4300 Indirect labor Indirect materials 7450 Depreciation 1900 Utilities 2950 Property taxes 500 (a) Prepare a flexible budget performance report, assuming that the company worked 8400 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 Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs Depreciation Direct Labor Hours Fixed Costs Indirect Labor Indirect Materials Property Taxes Supervision Total Costs Total Fixed Costs Total Variable Costs Utilities Variable Costs (b) Prepare a flexible budget performance report, assuming that the company worked 7800 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 Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs 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. ndirect labor $1.30 Indirect materials 0.90 Utilities 0.40 Fixed overhead costs per month are Supervision $4300, Depreciation $1900, and Property Taxes $500. The company believes it will normally operate in a range of 6400-9400 direct labor hours per month. Assume that in July 2017, Myers Company incurs the following manufacturing overhead costs Variable Costs Fixed Costs $10670 Supervision $4300 Indirect labor Indirect materials 7450 Depreciation 1900 Utilities 2950 Property taxes 500 (a) Prepare a flexible budget performance report, assuming that the company worked 8400 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 Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs Depreciation Direct Labor Hours Fixed Costs Indirect Labor Indirect Materials Property Taxes Supervision Total Costs Total Fixed Costs Total Variable Costs Utilities Variable Costs (b) Prepare a flexible budget performance report, assuming that the company worked 7800 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 Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs
