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 $3,700, Depreciation $1,800, and Property Taxes $600. The company believes it will normally operate in a range of 7,60010,900 direct labor hours per month. Assume that in July 2017, Myers Company incurs the following manufacturing overhead costs.

Variable Costs				Fixed Costs
Indirect labor		$9,570		Supervision		$3,700
Indirect materials		5,720		Depreciation		1,800
Utilities		3,520		Property taxes		600

(a) Prepare a flexible budget performance report, assuming that the company worked 9,800 direct labor hours during the month.

(b) Prepare a flexible budget performance report, assuming that the company worked 9,100 direct labor hours during the month. (List variable costs before fixed 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. Indirect labor $1.00 Indirect materials 0.60 Utilities 0.40 Fixed overhead costs per month are Supervision $3,700, Depreciation $1,800, and Property Taxes $600. The company believes it will normally operate in a range of 7,600-10,900 direct labor hours per month Assume that in July 2017, Myers Company incurs the following manufacturing overhead costs. Variable Costs Fixed Costs Indirect labor $9,570 Supervision $3,700 Indirect materials 5,720 Depreciation 1,800 Utilities 3,520 Property taxes 600 (a) Prepare a flexible budget performance report, assuming that the company worked 9,800 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 Actual Costs Budget nor Unfavorable Activate W Go to Settings