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Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overbead costs per direct labor hour are as follows. Indirect labor Indirect materials Utilities $1.40 0.80 0.30 Fixed overhead costs per month are Supervision $3,800, Depreciation $1.700, and Property Taxes $500. The company believes it will normally operate in a range of 7.400-11.600 direct labor hours per month. Assume that in July 2020. Myers Company Incurs the following manufacturing overhead costs. Variable Costs Indirect labor $14,010 Indirect materials 8,030 Utilities 2,650 Fixed Costs Supervision $3,800 Depreciation 1.700 Property taxes 500 (a) Prepare a flexible budget performance report, assuming that the company worked 10.200 direct labor hours during the month. (List variable costs before fixed costs.) Budget Actual Costs Direct Labor Hours 10200 10200 Variable Costs 14280 Indirect Labor i $ 14010 8160 i Indirect Materials i 8030 1: 3060 2650 25500 i 24690 3800 Supervision 3800 i 1700 1700 Depreciation 6000 6000 i Total Fixed Costs i 31500 1 $ $ $ 30690 Total Costs O a c 3 MYERS COMPANY Manufacturing Overhead Flexible Budget Report For the Month Ended July 31, 2020 D F Un Neith nor Budget Actual Costs NI 0 ED a O . Manufacturing Overhead Flexible Budget Report For the Month Ended July 31, 2020 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs TI 1 0 19 6 e 2

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