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 Indirect materials Utilities $1.00 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. Variable Costs Indirect labor Assume that in July 2020, Myers Company incurs the following manufacturing overhead costs. Indirect materials 0.70 Utilities 0.40 $10,760 7,520 3,950 Fixed Costs Supervision Depreciation Property taxes $4,200 1,800 600 (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.)

IndirectlabeeIndirectmoteriahUilities$1000.700.40 hours per month (b) Prepare a flecible budget perforenance report, assuming that the company worked 10,300 direct labor hours during the month (Ust varicble coats befone fixed costs) MYERS COMPANY Manufacturing Overhead Flexible Budget Report For the Month Ended July 31, 2020 Difference Favorable Unfavorable Neither Favorable Budget Actual Costs nor Unfavorable