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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 $1.40
Indirect materials 0.80
Utilities 0.30

Fixed overhead costs per month are Supervision $3,800, Depreciation $1,700, and Property Taxes $500. The company believes it will normally operate in a range of7,400-11,600direct labor hours per month. Assume that in July 2020, Myers Company incurs the following manufacturing overhead costs.

Variable Costs Fixed Costs
Indirect labor $14,010 Supervision $3,800
Indirect materials 8,030 Depreciation 1,700
Utilities 2,650 Property taxes 500

(a) a flexible budget performance report, assuming that the company worked10,200direct labor hours during the month

(b) a flexible budget performance report, assuming that the company worked9,700direct labor hours during the month.

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