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Wildhorse Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows.
Wildhorse 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 Utilities Indirect labor $1.30 Fixed overhead costs per month are Supervision $4,500, Depreciation $1,500, and Property Taxes $700. The company believes it will normally operate in a range of 6,100-10,600 direct labor hours per month. Assume that in July 2022, Wildhorse Company incurs the following manufacturing overhead costs. Indirect materials 0.60 Variable Costs Utilities 0.30 $11,560 5,290 Fixed Costs Supervision Depreciation 2,280 Property taxes $4,500 1,500 700 (a) Prepare a flexible budget performance report, assuming that the company worked 9,100 direct labor hours during the month. (List variable costs before fixed costs.) WILDHORSE COMPANY Manufacturing Overhead Flexible Budget Report For the Month Ended July 31, 2022
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