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Question 4 of 12 -/2 View Policies Current Attempt in Progress Sunland Company uses a flexible budget for manufacturing overhead based on direct labor hours.

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Question 4 of 12 -/2 View Policies Current Attempt in Progress Sunland 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 Indirect materials 0.80 Utilities 0.40 $1.20 Fixed overhead costs per month are Supervision $3,500, Depreciation $1,300, and Property Taxes $700. The company believes it will normally operate in a range of 5,500-8,500 direct labor hours per month. Assume that in July 2020, Sunland Company incurs the following manufacturing overhead costs. Variable Costs Fixed Costs Indirect labor $8,720 Supervision $3,500 Indirect materials 5,830 Depreciation 1,300 Utilities 2.590 Property taxes 700 (a) Prepare a flexible budget performance report, assuming that the company worked 7,500 direct labor hours during the month (List variable costs before fixed costs.) SUNLAND COMPANY Manufacturing Overhead Flexible Budget Report For the Month Ended July 31, 2020 Differe Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs Depreciation Direct Labor Hours Fixed Costs Indirect Labor Indirect Materials Property Taxes Supervision Total Costs Total Fixed Costs Total Variable Costs Utilities Variable Costs . $ $ (b) Prepare a flexible budget performance report, assuming that the company worked 6,800 direct labor hours during the month. list yariahle costs before fixed costs. Apocation W NWP Assessment Player Ul Application Question 4 of 12 -12 SUNLAND COMPANY Manufacturing Overhead Flexible Budget Report For the Month Ended July 31, 2020 Differe Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs Depreciation Direct Labor Hours Fixed Costs Indirect Labor Indirect Materials Property Taxes Supervision Total Costs Total Fixed Costs Total Variable Costs Utilities Variable Costs $ -12 TO CHE TUTTUU Juny 17 ZUZU Difference Favorable Unfavorable Neither Favorable nor Unfavorable Actual Costs $ Favorable Unfavorable Nelther Favorable nor Unfavorable $ $

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