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Please help with part a and part b. Will provide thumbs for any assistance. Thank you. (a) Prepare a flexible budget performance report, assuming that
Please help with part a and part b. Will provide thumbs for any assistance. Thank you.
(a) Prepare a flexible budget performance report, assuming that the company worked 7,380 direct labor hours during the month. (List variable costs before fixed costs.) Blue Spruce Company uses a flexible budget for manufacturing overhead based on direct labor hours. Budgeted variable manufacturing overhead costs per direct labor hour are as follows. Budgeted fixed overhead costs per month are Supervision $3,280, Depreciation $984, and property Taxes $656. The company believes it will normally operate in a range of 5,740-8,200 direct labor hours per month. Assume that in July 2022, Blue Spruce Company incurs the following manufacturing overhead costs. (b) Prepare a flexible budget performance report, assuming that the company worked 6,970 direct labor hours during the month. (ListStep by Step Solution
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