The Gallo Company uses a flexible budget and standard costs to aid planning and control of its machining manufacturing operations. Its costing system for manufactunng has two direct-cost categories (direct materials and directmanufacturing labor0th variable) and two overhead-cost categories (variable manufacturing overhead and fixed manufacturing overhead, both allocated using direct manufacturing labor-hours). The following actual resulits are for August: (Click the icon to view the results.) Some additional information about Gallo Company's budget, standard costs and labor follows: (Click the icon to view additional information.) The Gallo Company uses a flexible budget and standard costs to aid planning and control of its machining manufacturing operations. Its costing system for manufactunng has two direct-cost categories (direct materials and directmanufacturing labor0th variable) and two overhead-cost categories (variable manufacturing overhead and fixed manufacturing overhead, both allocated using direct manufacturing labor-hours). The following actual resulits are for August: (Click the icon to view the results.) Some additional information about Gallo Company's budget, standard costs and labor follows: (Click the icon to view additional information.)