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 $1.30 Indirect materials 0.70 Utilities 0.40

Fixed overhead costs per month are Supervision $4,500, Depreciation $1,000, and Property Taxes $700. The company believes it will normally operate in a range of 6,30011,100 direct labor hours per month. Assume that in July 2017, Myers Company incurs the following manufacturing overhead costs.

Variable Costs Fixed Costs Indirect labor $12,140 Supervision $4,500 Indirect materials 6,470 Depreciation 1,000 Utilities 3,370 Property taxes 700

(a) Prepare a flexible budget performance report, assuming that the company worked 9,500 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 [Entry field with correct answer] Depreciation Direct Labor Hours Fixed Costs Indirect Labor Indirect Materials Property Taxes Supervision Total Costs Total Fixed Costs Total Variable Costs Utilities Variable Costs [Entry field with incorrect answer] [Entry field with incorrect answer] [Entry field with correct answer] Depreciation Direct Labor Hours Fixed Costs Indirect Labor Indirect Materials Property Taxes Supervision Total Costs Total Fixed Costs Total Variable Costs Utilities Variable Costs [Entry field with correct answer] Depreciation Direct Labor Hours Fixed Costs Indirect Labor Indirect Materials Property Taxes Supervision Total Costs Total Fixed Costs Total Variable Costs Utilities Variable Costs $ [Entry field with incorrect answer] $ [Entry field with incorrect answer] $ [Entry field with incorrect answer] [Entry field with correct answer] Favorable Unfavorable Neither Favorable nor Unfavorable [Entry field with correct answer] Depreciation Direct Labor Hours Fixed Costs Indirect Labor Indirect Materials Property Taxes Supervision Total Costs Total Fixed Costs Total Variable Costs Utilities Variable Costs [Entry field with incorrect answer] [Entry field with incorrect answer] [Entry field with incorrect answer] [Entry field with correct answer] Favorable Unfavorable Neither Favorable nor Unfavorable [Entry field with correct answer] Depreciation Direct Labor Hours Fixed Costs Indirect Labor Indirect Materials Property Taxes Supervision Total Costs Total Fixed Costs Total Variable Costs Utilities Variable Costs [Entry field with incorrect answer] [Entry field with incorrect answer] [Entry field with incorrect answer] [Entry field with correct answer] Favorable Unfavorable Neither Favorable nor Unfavorable [Entry field with correct answer] Depreciation Direct Labor Hours Fixed Costs Indirect Labor Indirect Materials Property Taxes Supervision Total Costs Total Fixed Costs Total Variable Costs Utilities Variable Costs [Entry field with incorrect answer] [Entry field with incorrect answer] [Entry field with incorrect answer] [Entry field with correct answer] Favorable Unfavorable Neither Favorable nor Unfavorable [Entry field with correct answer] Depreciation Direct Labor Hours Fixed Costs Indirect Labor Indirect Materials Property Taxes Supervision Total Costs Total Fixed Costs Total Variable Costs Utilities Variable Costs [Entry field with correct answer] Depreciation Direct Labor Hours Fixed Costs Indirect Labor Indirect Materials Property Taxes Supervision Total Costs Total Fixed Costs Total Variable Costs Utilities Variable Costs [Entry field with incorrect answer] [Entry field with incorrect answer] [Entry field with correct answer] [Entry field with correct answer] Favorable Unfavorable Neither Favorable nor Unfavorable [Entry field with correct answer] Depreciation Direct Labor Hours Fixed Costs Indirect Labor Indirect Materials Property Taxes Supervision Total Costs Total Fixed Costs Total Variable Costs Utilities Variable Costs [Entry field with incorrect answer] [Entry field with incorrect answer] [Entry field with correct answer] [Entry field with correct answer] Favorable Unfavorable Neither Favorable nor Unfavorable [Entry field with correct answer] Depreciation Direct Labor Hours Fixed Costs Indirect Labor Indirect Materials Property Taxes Supervision Total Costs Total Fixed Costs Total Variable Costs Utilities Variable Costs [Entry field with incorrect answer] [Entry field with incorrect answer] [Entry field with correct answer] [Entry field with correct answer] Favorable Unfavorable Neither Favorable nor Unfavorable [Entry field with correct answer] Depreciation Direct Labor Hours Fixed Costs Indirect Labor Indirect Materials Property Taxes Supervision Total Costs Total Fixed Costs Total Variable Costs Utilities Variable Costs [Entry field with incorrect answer] [Entry field with incorrect answer] [Entry field with correct answer] [Entry field with correct answer] Favorable Unfavorable Neither Favorable nor Unfavorable [Entry field with correct answer] Depreciation Direct Labor Hours Fixed Costs Indirect Labor Indirect Materials Property Taxes Supervision Total Costs Total Fixed Costs Total Variable Costs Utilities Variable Costs $ [Entry field with incorrect answer] $ [Entry field with incorrect answer] $ [Entry field with incorrect answer] [Entry field with correct answer] Favorable Unfavorable Neither Favorable nor Unfavorable

(b) Prepare a flexible budget performance report, assuming that the company worked 8,700 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 [Entry field with correct answer] Depreciation Direct Labor Hours Fixed Costs Indirect Labor Indirect Materials Property Taxes Supervision Total Costs Total Fixed Costs Total Variable Costs Utilities Variable Costs [Entry field with incorrect answer] [Entry field with incorrect answer] [Entry field with correct answer] Depreciation Direct Labor Hours Fixed Costs Indirect Labor Indirect Materials Property Taxes Supervision Total Costs Total Fixed Costs Total Variable Costs Utilities Variable Costs [Entry field with correct answer] Depreciation Direct Labor Hours Fixed Costs Indirect Labor Indirect Materials Property Taxes Supervision Total Costs Total Fixed Costs Total Variable Costs Utilities Variable Costs $ [Entry field with incorrect answer] $ [Entry field with incorrect answer] $ [Entry field with incorrect answer] [Entry field with correct answer] Unfavorable Favorable Neither Favorable nor Unfavorable [Entry field with correct answer] Depreciation Direct Labor Hours Fixed Costs Indirect Labor Indirect Materials Property Taxes Supervision Total Costs Total Fixed Costs Total Variable Costs Utilities Variable Costs [Entry field with incorrect answer] [Entry field with incorrect answer] [Entry field with incorrect answer] [Entry field with correct answer] Unfavorable Favorable Neither Favorable nor Unfavorable [Entry field with correct answer] Depreciation Direct Labor Hours Fixed Costs Indirect Labor Indirect Materials Property Taxes Supervision Total Costs Total Fixed Costs Total Variable Costs Utilities Variable Costs [Entry field with incorrect answer] [Entry field with incorrect answer] [Entry field with incorrect answer] [Entry field with correct answer] Favorable Unfavorable Neither Favorable nor Unfavorable [Entry field with correct answer] Depreciation Direct Labor Hours Fixed Costs Indirect Labor Indirect Materials Property Taxes Supervision Total Costs Total Fixed Costs Total Variable Costs Utilities Variable Costs [Entry field with incorrect answer] [Entry field with incorrect answer] [Entry field with incorrect answer] [Entry field with correct answer] Unfavorable Favorable Neither Favorable nor Unfavorable [Entry field with correct answer] Depreciation Direct Labor Hours Fixed Costs Indirect Labor Indirect Materials Property Taxes Supervision Total Costs Total Fixed Costs Total Variable Costs Utilities Variable Costs [Entry field with correct answer] Depreciation Direct Labor Hours Fixed Costs Indirect Labor Indirect Materials Property Taxes Supervision Total Costs Total Fixed Costs Total Variable Costs Utilities Variable Costs [Entry field with incorrect answer] [Entry field with incorrect answer] [Entry field with correct answer] [Entry field with correct answer] Favorable Unfavorable Neither Favorable nor Unfavorable [Entry field with correct answer] Depreciation Direct Labor Hours Fixed Costs Indirect Labor Indirect Materials Property Taxes Supervision Total Costs Total Fixed Costs Total Variable Costs Utilities Variable Costs [Entry field with incorrect answer] [Entry field with incorrect answer] [Entry field with correct answer] [Entry field with correct answer] Favorable Unfavorable Neither Favorable nor Unfavorable [Entry field with correct answer] Depreciation Direct Labor Hours Fixed Costs Indirect Labor Indirect Materials Property Taxes Supervision Total Costs Total Fixed Costs Total Variable Costs Utilities Variable Costs [Entry field with incorrect answer] [Entry field with incorrect answer] [Entry field with correct answer] [Entry field with correct answer] Favorable Unfavorable Neither Favorable nor Unfavorable [Entry field with correct answer] Depreciation Direct Labor Hours Fixed Costs Indirect Labor Indirect Materials Property Taxes Supervision Total Costs Total Fixed Costs Total Variable Costs Utilities Variable Costs [Entry field with incorrect answer] [Entry field with incorrect answer] [Entry field with correct answer] [Entry field with correct answer] Favorable Unfavorable Neither Favorable nor Unfavorable [Entry field with correct answer] Depreciation Direct Labor Hours Fixed Costs Indirect Labor Indirect Materials Property Taxes Supervision Total Costs Total Fixed Costs Total Variable Costs Utilities Variable Costs $ [Entry field with incorrect answer] $ [Entry field with incorrect answer] $ [Entry field with incorrect answer]