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		$ 1.00
Indirect materials		0.50
Utilities		0.30

Fixed overhead costs per month are Supervision $ 3,500 , Depreciation $ 1,000 , and Property Taxes $ 500 . The company believes it will normally operate in a range of 5,500 8,500 direct labor hours per month. Assume that in July 2017, Myers Company incurs the following manufacturing overhead costs.

Variable Cost

Fix Cost

Indirect labor

$ 7,300

Supervision

$ 3,500

Indirect materials

3,650

Depreciation

1,000

Utilities

1,850

Property taxes

500

(a) Prepare a flexible budget performance report, assuming that the company worked 7,500 direct labor hours during the month.

(b) Prepare a flexible budget performance report, assuming that the company worked 7,000 direct labor hours during the month.