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 $ 4,200, Depreciation $ 1,800, and Property Taxes $ 600. The company believes it will normally operate in a range of 7,000 13,000 direct labor hours per month. Assume that in July 2017, Myers Company incurs the following manufacturing overhead costs.

Variable Costs				Fixed Costs
Indirect labor		$ 10,760		Supervision		$ 4,200
Indirect materials		7,520		Depreciation		1,800
Utilities		3,950		Property taxes		600

(a) Prepare a flexible budget performance report, assuming that the company worked 11,000 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
select an opening Budget itemselect an opening Budget item DepreciationDirect Labor HoursFixed CostsIndirect LaborIndirect MaterialsProperty TaxesSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs		Enter a number of hours		Enter a number of hours
select an opening name for section oneselect an opening name for section one DepreciationDirect Labor HoursFixed CostsIndirect LaborIndirect MaterialsProperty TaxesSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs
select a Budget itemselect a Budget item DepreciationDirect Labor HoursFixed CostsIndirect LaborIndirect MaterialsProperty TaxesSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs		$ enter a dollar amount		$ enter a dollar amount		$ enter a difference amount for this row	select an optionselect an option Favorable Unfavorable Neither Favorable nor Unfavorable
select a Budget itemselect a Budget item DepreciationDirect Labor HoursFixed CostsIndirect LaborIndirect MaterialsProperty TaxesSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs		enter a dollar amount		enter a dollar amount		enter a difference amount for this row	select an optionselect an option Favorable Unfavorable Neither Favorable nor Unfavorable
select a Budget itemselect a Budget item DepreciationDirect Labor HoursFixed CostsIndirect LaborIndirect MaterialsProperty TaxesSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs		enter a dollar amount		enter a dollar amount		enter a difference amount for this row	select an optionselect an option Favorable Unfavorable Neither Favorable nor Unfavorable
select a closing name for section oneselect a closing name for section one DepreciationDirect Labor HoursFixed CostsIndirect LaborIndirect MaterialsProperty TaxesSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs		enter a total amount for section one		enter a total amount for section one		enter a difference amount for this row	select an optionselect an option Favorable Unfavorable Neither Favorable nor Unfavorable
select an opening name for section twoselect an opening name for section two DepreciationDirect Labor HoursFixed CostsIndirect LaborIndirect MaterialsProperty TaxesSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs
select a Budget itemselect a Budget item DepreciationDirect Labor HoursFixed CostsIndirect LaborIndirect MaterialsProperty TaxesSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs		enter a dollar amount		enter a dollar amount		enter a difference amount for this row	select an optionselect an option FavorableUnfavorableNeither Favorable nor Unfavorable
select a Budget itemselect a Budget item DepreciationDirect Labor HoursFixed CostsIndirect LaborIndirect MaterialsProperty TaxesSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs		enter a dollar amount		enter a dollar amount		enter a difference amount for this row	select an optionselect an option FavorableUnfavorableNeither Favorable nor Unfavorable
select a Budget itemselect a Budget item DepreciationDirect Labor HoursFixed CostsIndirect LaborIndirect MaterialsProperty TaxesSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs		enter a dollar amount		enter a dollar amount		enter a difference amount for this row	select an optionselect an option FavorableUnfavorableNeither Favorable nor Unfavorable
select a closing name for section twoselect a closing name for section two DepreciationDirect Labor HoursFixed CostsIndirect LaborIndirect MaterialsProperty TaxesSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs		enter a total amount for section two		enter a total amount for section two		enter a difference amount for this row	select an optionselect an option FavorableUnfavorableNeither Favorable nor Unfavorable
select a closing Budget itemselect a closing Budget item DepreciationDirect Labor HoursFixed CostsIndirect LaborIndirect MaterialsProperty TaxesSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs		$ enter a total amount for the Manufacturing Overhead Flexible Budget		$ enter a total amount for the Manufacturing Overhead Flexible Budget		$ enter a difference amount for this row	select an optionselect an option Favorable Unfavorable Neither Favorable nor Unfavorable

(b) Prepare a flexible budget performance report, assuming that the company worked 10,300 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