E$10\mathrm{.}4($LO $2),$ AN Using the information in E$10\mathrm{.}3,$ assume that in July $2020,$ Myers Company incurs the following manufacturing overhead costs.

Prepare flexible budget reports for manufacturing overhead costs, and comment on findings.

Variable Costs

Fixed Costs

Indirect labor

$$8,800$

Supervision

$$4,000$

Indirect materials

$5,800$

Depreciation

$1,200$

Utilities

$3,200$

Property taxes

$800$

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.