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 0.60 Utilities 0.40 Fixed overhead costs per month are Supervision $3,700, Depreciation $1,800, and Property Taxes $600. The company believes it will normally operate in a range of 7,60010,900 direct labor hours per month. Assume that in July 2017, Myers Company incurs the following manufacturing overhead costs.

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 $1.00 Indirect labor Indirect materials 0.60 Utilities 0.40 Fixed overhead costs per month are Supervision $3,700, Depreciation $1,800, and Property Taxes $600. The company believes it will normally operate in a range of 7,600-10,900 direct labor hours per month. Assume that in July 2017, Myers Company incurs the following manufacturing overhead costs. Variable Costs Fixed Costs $3,700 $9,570 Supervision Indirect labor 5,720 Depreciation Indirect materials 1,800 Utilities 3,520 Property taxes 600 (a) Prepare a flexible budget performance report, assuming that the company worked 9,800 direct labor hours during the month. (List variable costs before fixed costs.) Favorable Unfavorable Neither Favorable Budget Actual Costs nor Unfavorable Direct Labor Hours 9800 9800 Variable Costs $ $ i i i Indirect Labor 9800 9570 230 Favorable i i i Favorable Indirect Materials 5880 5720 160 i i Utilities 3920 3520 400 Favorable i i Total Variable Costs 18810 Favorable 19600 790 Total Variable Costs i Supervision 3700 3700 Neither Favorable nor Unfav i i Depreciation 1800 1800 Neither Favorable nor Unfav i Property Taxes Neither Favorable nor Unfav 600 600 i i Total Fixed Costs Neither Favorable nor Unfav 6100 6100 $ $ i i 25700 Total Costs 24910 790 Favorable 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 $1.00 Indirect labor Indirect materials 0.60 Utilities 0.40 Fixed overhead costs per month are Supervision $3,700, Depreciation $1,800, and Property Taxes $600. The company believes it will normally operate in a range of 7,600-10,900 direct labor hours per month. Assume that in July 2017, Myers Company incurs the following manufacturing overhead costs. Variable Costs Fixed Costs $3,700 $9,570 Supervision Indirect labor 5,720 Depreciation Indirect materials 1,800 Utilities 3,520 Property taxes 600 (a) Prepare a flexible budget performance report, assuming that the company worked 9,800 direct labor hours during the month. (List variable costs before fixed costs.)