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		$ 1.10
Indirect materials		0.50
Utilities		0.40

Fixed overhead costs per month are Supervision $ 3,900 , Depreciation $ 1,100 , and Property Taxes $ 700 . The company believes it will normally operate in a range of 5,900 9,800 direct labor hours per month. Assume that in July 2017, Myers Company incurs the following manufacturing overhead costs.

Variable Costs				Fixed Costs
Indirect labor		$ 9,050		Supervision		$ 3,900
Indirect materials		4,070		Depreciation		1,100
Utilities		2,990		Property taxes		700

(a) Prepare a flexible budget performance report, assuming that the company worked 8,500 direct labor hours during the month.

(b) Prepare a flexible budget performance report, assuming that the company worked 7,800 direct labor hours during the month.