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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.
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. Fixed overhead costs per month are Supervision $ 3, 700, Depredation $ 1, 700, and Property Taxes $ 800. The company believes it will normally operate in a range of 5, 700 - 9, 300 direct labor hours per month. Assume that in July 2017, Myers Company incurs the following manufacturing overhead costs. Prepare a flexible budget performance report, assuming that the company worked 8, 100 direct labor hours during the month. (List variable costs before fixed costs.) Prepare a flexible budget performance report, assuming that the company worked 7, 300 direct labor hours during the month. (List variable costs before fixed costs.)
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