TJsing the information in E25.3, assume that in July 2022, Myers Company incurs the following manufacturing overhead costs

Information from E25.3. Fixed overhead costs per month are supervision $4,000, depreciation $1,200, and property taxes $800. The company believes it will normally operate in a range of 7,000- 10,000 direct labor hours per month. 

Instructions
a. Prepare a flexible budget performance report, assuming that the company worked 9,000 direct labor hours during the month.
b. Prepare a flexible budget performance report, assuming that the company worked 8,500 direct labor hours during the month.
c. Comment on your findings.

Transcribed Image Text:

Variable Costs Indirect labor Indirect materials Utilities $8,800 5,800 3,200 Fixed Costs Supervision Depreciation Property taxes $4,000 1,200 800