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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 areas follows: Indirect

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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 areas follows: Indirect labor Indirect materials Utilities $1.00 0.80 0.20 Fixed overhead costs per month are Supervision $4,500, Depreciation $1,400, and Property Taxes $700. The company believes it will normally operate in a range of 7,800-12,900 direct labor hours per month Prepare a monthly manufacturing overhead flexible budget for 2020 for the expected range of activity, using increments of 1,700 direct labor hours. (List variable costs before fixed costs.) MYERS COMPANY Monthly Manufacturing Overhead Flexible Budget For the Year 2020 Direct Labor Hours 7800 Variable Costs Indirect Labor Indirect Materials Utilities Direct Labor Hours 7800 Variable Costs V Indirect Labor $ $ $ Indirect Materials V Utilities Total Variable Costs Fixed Costs Supervision > $ The Sports Equipment Division of Harrington Company is operated as a profit center. Sales for the division were budgeted for 2020 at $905,000. The only variable costs budgeted for the division were cost of goods sold ($445,000) and selling and administrative ($62,000). Fixed costs were budgeted at $104,000 for cost of goods sold, $95,000 for selling and administrative, and $71,000 for noncontrollable fixed costs. Actual results for these items were: $881,000 414,000 105,000 Sales Cost of goods sold Variable Fixed Selling and administrative Variable Fixed Noncontrollable fixed 64,000 71,000 90,000 (a) Prepare a responsibility report for the Sports Equipment Division for 2020. (List variable costs before fixed costs.) HARRINGTON COMPANY Sports Equipment Division Responsibility Report For the Year Ended December 31, 2020 Budget Actual Difference Favorable Unfavorable Neither Favorable nor Unfavorable For the Year Ended December 31, 2020 Budget Actual Difference Favorable Unfavorable Neither Favorable nor Unfavorable > $ $ $ > > > > > > $

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