Pronghorn 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		0.70
Utilities		0.30

Fixed overhead costs per month are Supervision $4,100, Depreciation $1,000, and Property Taxes $800. The company believes it will normally operate in a range of 7,20013,200 direct labor hours per month. Assume that in July 2017, Pronghorn Company incurs the following manufacturing overhead costs.

Variable Costs				Fixed Costs
Indirect labor		$10,940		Supervision		$4,100
Indirect materials		7,640		Depreciation		1,000
Utilities		2,950		Property taxes		800

Prepare a flexible budget performance report, assuming that the company worked 11,200 direct labor hours during the month. (List variable costs before fixed costs.) PRONGHORN COMPANY Manufacturing Overhead Flexible Budget Report July 31, 2017 Difference Favorable/Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs Direct Labor Hours Variable Costs Indirect Labor Indirect Materials Utilities Total Variable Costs Fixed Costs Supervision Depreciation Property Taxes Total Fixed Costs Total Costs LINK TO TEXT VIDEO: APPLIED SKILLS