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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. Indirect labor $1.20 Indirect materials 0.80 Utilities 0.40 Fixed overhead costs per month are Supervision $3,600, Depreciation $1,000, and Property Taxes $900. The company believes it will normally operate in a range of 8,000-13,700 direct labor hours per month. Assume that in July 2020, Myers Company incurs the following manufacturing overhead costs. Variable Costs Fixed Costs Indirect labor $13,920 Supervision $3,600 Indirect materials 9,320 Depreciation 1,000 Utilities 4,240 Property taxes 900 (a) Prepare a flexible budget performance report, assuming that the company worked 11,800 direct labor hours ying the month. (List variable costs before fixed costs.) t lution Budget Actual Costs nor Unfav > > > $ $ > > $ $ $ $ $ $ $ Budget Actual Costs nor Untav $ $ $ $ $ $ $ $ $ $
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