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Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing...

Myers 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 0.50
Utilities 0.40


Fixed overhead costs per month are Supervision $3,900, Depreciation $1,100, and Property Taxes $700. The company believes it will normally operate in a range of 5,900–9,800 direct labor hours per month.

Assume that in July 2020, Myers Company incurs the following manufacturing overhead costs.

Variable Costs

Fixed Costs
Indirect labor $9,050 Supervision $3,900
Indirect materials 4,070 Depreciation 1,100
Utilities 2,990 Property taxes 700


(a) Prepare a flexible budget performance report, assuming that the company worked 8,500 direct labor hours during the month and prepare a flexible budget performance report, assuming that the company worked 7,800 direct labor hours during the month.. (List variable costs before fixed costs.)

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ekkarill92 answered 2 years ago
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