Thome 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 $1.50 Indirect materials 0.80 Utilities 0.30 Fixed overhead costs per month are supervision $3,745, depreciation $1,615, and property taxes $576. The company believes it will normally operate in a range of 6,20011,300 direct labor hours per month. Assume that in July 2014, Thome Company incurs the following manufacturing overhead costs. Variable Costs Fixed Costs Indirect labor $14,170 Supervision $3,745 Indirect materials 7,502 Depreciation 1,615 Utilities 2,436 Property taxes 576

Prepare a flexible budget performance report, assuming that the company worked 9,600 direct labor hours during the month. (List variable costs before fixed costs.)