$($b$)$ Prepare a flexible budget performance report, assuming that the company worked $8,670$ direct labor hours during the month. $($List

variable costs before fixed costs.$)$

NOVAK COMPANY

Manufacturing Overhead Flexible Budget Report

Differe!

Favoral

Unfavori

Neither Fav

Budget

Actual Costs

nor Unfavs

$

$

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

costs per direct labor hour are as follows.

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.

Assume that in July $2025,$ Novak Company incurs the following manufacturing overhead costs.

$($a$)$ Prepare a flexible budget performance report, assuming that the company worked $9,000$ direct labor hours during the month. $($List

variable costs before fixed costs.$)$

NOVAK COMPANY

Manufacturing Overhead Flexible Budget Report