E10-3B Using the information in E10-2B, assume that in July 2017, Cuban Company incurs the following manufacturing overhead costs. Variable Costs Fixed Costs Indirect labor $6,100 Supervision $4,000 Indirect materials 4,300 Depreciation 3,000 Utilities 3,200 Property taxes 800

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

E10-4B Paradise Company uses fl exible budgets to control its selling expenses. Monthly sales are expected to range from $170,000 to $200,000. Variable costs and their percentage relationship to sales are: Sales Commissions 6%, Advertising 4%, Traveling 3%, and Delivery 2%. Fixed selling expenses will consist of Sales Salaries $35,000, Depreciation on Delivery Equipment $7,000, and Insurance on Delivery Equipment $1,000.

Instructions Prepare a monthly flexible budget for each $10,000 increment of sales within the relevant range for the year ending December 31, 2017.