$($b$)$ Prepare a flexible budget performance report, assuming that the company worked $6,970$ direct labor hours during the month. $($List variable costs before fixed costs.$)$

AYAYAI COMPANY Manufacturing Overhead Flexible Budget Report

For the Month Ended July $31,2025$

Difference

Favorable

Unfavorable

Neither Favorable

Budget

Actual Costs nor Unfavorable

Variable Costs

Indirect Materials

$

$

$

Indirect Labor

Favorable

Neither Favorable nor Unfavorable

Ayayai Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows.

$\backslash$table$[[$Indirect labor,$$1\mathrm{.}00$