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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 are as follows.

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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 are as follows. Indirect labor $1.30 0.90 direct mate Utilities 0.40 $1,900, and Property Taxes $500. The company believes it will normally operate in a range of 6,400-9,400 direct labor hours per month. Fixed overhead costs per month are Supervision $4 300, Depreciation Assume that in July 2017, Myers Company incurs the following manufacturing overhead costs. Variable Costs Fixed Costs Indirect labor $10,670 Supervision $4,300 Indirect 7,450 Depreciation 1,900 materials 2,950 Property Utilities 00 (a) Prepare a flexible budget performance report, assuming that the company worked 8,400 direct labor hours during the month. (List variable costs before fixed costs.) MYERS COMPANY Manufacturing overhead Flexible Budget Report For the Month Ended July 3, 2017 Difference Neither Favorable Budget Actual Costs Variable Costs as a

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