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	0.70
Utilities	0.40

Fixed overhead costs per month are Supervision $ 4,000 , Depreciation $ 1,200 , and Property Taxes $ 800 . The company believes it will normally operate in a range of 7,000 10,000 direct labor hours per month.

Assume that in July 2017, Myers Company incurs the following manufacturing overhead costs.

Variable Costs	Fixed Costs
Indirect labor	$ 8,800	Supervision	$ 4,000
Indirect materials	5,800	Depreciation	1,200
Utilities	3,200	Property taxes	800

(a)Prepare a flexible budget performance report, assuming that the company worked 9,000 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
Budget	Actual Costs	Favorable Unfavorable Neither Favorable nor Unfavorable
Depreciation Direct Labor Hours Fixed Costs Indirect Labor Indirect Materials Property Taxes Supervision Total Costs Total Fixed Costs Total Variable Costs Utilities Variable 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
Depreciation Direct Labor Hours Fixed Costs Indirect Labor Indirect Materials Property Taxes Supervision Total Costs Total Fixed Costs Total Variable Costs Utilities Variable Costs	$	$	$	Favorable Unfavorable Neither Favorable nor Unfavorable
Depreciation Direct Labor Hours Fixed Costs Indirect Labor Indirect Materials Property Taxes Supervision Total Costs Total Fixed Costs Total Variable Costs Utilities Variable Costs				Favorable Unfavorable Neither Favorable nor Unfavorable
Depreciation Direct Labor Hours Fixed Costs Indirect Labor Indirect Materials Property Taxes Supervision Total Costs Total Fixed Costs Total Variable Costs Utilities Variable Costs				Favorable Unfavorable Neither Favorable nor Unfavorable
Depreciation Direct Labor Hours Fixed Costs Indirect Labor Indirect Materials Property Taxes Supervision Total Costs Total Fixed Costs Total Variable Costs Utilities Variable Costs				Favorable Unfavorable Neither Favorable nor Unfavorable
Depreciation Direct Labor Hours Fixed Costs Indirect Labor Indirect Materials Property Taxes Supervision Total Costs Total Fixed Costs Total Variable Costs Utilities Variable 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				Favorable Unfavorable Neither Favorable nor Unfavorable
Depreciation Direct Labor Hours Fixed Costs Indirect Labor Indirect Materials Property Taxes Supervision Total Costs Total Fixed Costs Total Variable Costs Utilities Variable Costs				Favorable Unfavorable Neither Favorable nor Unfavorable
Depreciation Direct Labor Hours Fixed Costs Indirect Labor Indirect Materials Property Taxes Supervision Total Costs Total Fixed Costs Total Variable Costs Utilities Variable Costs				Favorable Unfavorable Neither Favorable nor Unfavorable
Depreciation Direct Labor Hours Fixed Costs Indirect Labor Indirect Materials Property Taxes Supervision Total Costs Total Fixed Costs Total Variable Costs Utilities Variable Costs				Favorable Unfavorable Neither Favorable nor Unfavorable
Depreciation Direct Labor Hours Fixed Costs Indirect Labor Indirect Materials Property Taxes Supervision Total Costs Total Fixed Costs Total Variable Costs Utilities Variable Costs	$	$	$	Favorable Unfavorable Neither Favorable nor Unfavorable

(b)Prepare a flexible budget performance report, assuming that the company worked 8,500 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
Budget	Actual Costs	Favorable Unfavorable Neither Favorable nor Unfavorable
Depreciation Direct Labor Hours Fixed Costs Indirect Labor Indirect Materials Property Taxes Supervision Total Costs Total Fixed Costs Total Variable Costs Utilities Variable 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
Depreciation Direct Labor Hours Fixed Costs Indirect Labor Indirect Materials Property Taxes Supervision Total Costs Total Fixed Costs Total Variable Costs Utilities Variable Costs	$	$	$	Unfavorable Favorable Neither Favorable nor Unfavorable
Depreciation Direct Labor Hours Fixed Costs Indirect Labor Indirect Materials Property Taxes Supervision Total Costs Total Fixed Costs Total Variable Costs Utilities Variable Costs				Favorable Unfavorable Neither Favorable nor Unfavorable
Depreciation Direct Labor Hours Fixed Costs Indirect Labor Indirect Materials Property Taxes Supervision Total Costs Total Fixed Costs Total Variable Costs Utilities Variable Costs				Favorable Unfavorable Neither Favorable nor Unfavorable
Depreciation Direct Labor Hours Fixed Costs Indirect Labor Indirect Materials Property Taxes Supervision Total Costs Total Fixed Costs Total Variable Costs Utilities Variable Costs				Favorable Unfavorable Neither Favorable nor Unfavorable
Depreciation Direct Labor Hours Fixed Costs Indirect Labor Indirect Materials Property Taxes Supervision Total Costs Total Fixed Costs Total Variable Costs Utilities Variable 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				Favorable Unfavorable Neither Favorable nor Unfavorable
Depreciation Direct Labor Hours Fixed Costs Indirect Labor Indirect Materials Property Taxes Supervision Total Costs Total Fixed Costs Total Variable Costs Utilities Variable Costs				Favorable Unfavorable Neither Favorable nor Unfavorable
Depreciation Direct Labor Hours Fixed Costs Indirect Labor Indirect Materials Property Taxes Supervision Total Costs Total Fixed Costs Total Variable Costs Utilities Variable Costs				Favorable Unfavorable Neither Favorable nor Unfavorable
Depreciation Direct Labor Hours Fixed Costs Indirect Labor Indirect Materials Property Taxes Supervision Total Costs Total Fixed Costs Total Variable Costs Utilities Variable Costs				Favorable Unfavorable Neither Favorable nor Unfavorable
Depreciation Direct Labor Hours Fixed Costs Indirect Labor Indirect Materials Property Taxes Supervision Total Costs Total Fixed Costs Total Variable Costs Utilities Variable Costs	$	$	$	Favorable Unfavorable Neither Favorable nor Unfavorable