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Sheridan 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 $1.10 Indirect materials 0.70 Utilities 0.40 Fixed overhead costs per month are Supervision $4,100, Depreciation $2,000, and Property Taxes $500. The company believes it will normally operate in a range of 7,100-12,800 direct labor hours per month. Assume that in July 2020, Sheridan Company incurs the following manufacturing overhead costs. Variable Costs Indirect labor $11,710 Indirect materials 7,460 Utilities 3,860 Fixed Costs Supervision $4,100 Depreciation 2,000 Property taxes 500 (a) Prepare a flexible budget performance report, assuming that the company worked 10,900 direct labor hours during the month. (List variable costs before fixed costs.) Overed Flexible Budget Report For the Month Ended July 31, 2020 Di Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs Direct Labor Hours 10900 10900 Variable Costs Indirect Libor 11990 12881 $ 891 Indirect Materials 7630 1 8197 567 Utilities 4360 i 4684 324 Total Variable Costs 23980 1 25762 1782 Fixed Costs Supervision 4100 4100 0 Depreciation 2000 i 2000 i 0 Property Taxes 500 500 i 0 Total Fixed Costs 6600 6600 i 0 Total Costs $ 30580 $ $ 32362 $ 1782 (b) Prepare a flexible budget performance report, assu (List variable costs before fixed costs that the company worked 10,300 direct labor hours during the month. SHERIDAN COMPANY Manufacturing Overhead Flexible Budget Report For the Month Ended July 31, 2020 Di Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs Direct Labor Hours 10300 10300 Variable Costs Indirect Labor $ 11330 $ 12881 $ 1551 Indirect Materials 7210 8197 987 Utilities 4120 i 4684 564 Total Variable Costs 22660 25762 3102 Fixed Costs Supervision 4100 4100 2000 2000 Depreciation 0 Town 5 500 Total Fixed Costs 6600 6600 29260 $ i Total Costs 32362 $ 3102 e Textbook and Media

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