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. Utilities $1.00 Variable Costs Indirect labor Indirect materials 0.90 Fixed overhead costs per month are Supervision $3,700, Depreciation $1,700, and Property Taxes $800. The company believes it will normally operate in a range of 5,700-9,300 direct labor hours per month. Assume that in July 2020, Myers Company incurs the following manufacturing overhead costs. 0.40 $7,870 > 7,120 2,780 Fixed Costs Supervision Depreciation Property taxes $3,700 Budget 1,700 800 (a) Prepare a flexible budget performance report, assuming that the company worked 8,100 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, 2020 Actual Costs Difference Favorable Unfavorable Neither Favorable nor Unfavorable

urmit Attumpt in Progress MYERS COMPANY Manufacturing Overhead Flexible Budgat Report For the Month Ended July 31, 2020 5 5