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	0.30

Fixed overhead costs per month are Supervision $ 4,100 , Depreciation $ 1,000 , and Property Taxes $ 800 . The company believes it will normally operate in a range of 7,200 ? 13,200 direct labor hours per month.

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

Variable Costs	Fixed Costs
Indirect labor	$ 10,940	Supervision	$ 4,100
Indirect materials	7,640	Depreciation	1,000
Utilities	2,950	Property taxes	800

(b)Prepare a flexible budget performance report, assuming that the company worked 10,600 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				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				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
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	$	$	$	Unfavorable Favorable Neither Favorable nor Unfavorable