Using the information in E7-1, assume that in July 2002, Voss Company incurs the following manufacturing overhead costs.

Instructions

(a) Prepare a flexible budget performance report, assuming that the company worked 9,000 direct labor hours during the month. The company expected to work 9,000 direct labor hours.

(b) Prepare a flexible budget performance report, assuming that the company worked 8,500 direct labor hours during the month. The company expected to work 8,500 direct labor hours.

(c) Comment on your findings.

Transcribed Image Text:

Variable Costs Fixed Costs Indirect labor $8,700 Supervision $4,000 Indirect materials 4,300 Depreciation 1,500 Utilities 2,500 Property taxes 800