Part A) Prepare a flexible budget performance report, assuming that the company worked 11,800 direct labor hours during the month.

Part B) Prepare a flexible budget performance report, assuming that the company worked 11,200 direct labor hours during the month.

Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows. Indirect labor Indirect materials Utilities $1.20 0.80 0.40 Fixed overhead costs per month are Supervision $3,600, Depreciation $1,000, and Property Taxes $900. The company believes it will normally operate in a range of 8,000-13,700 direct labor hours per month. Assume that in July 2020, Myers Company incurs the following manufacturing overhead costs. Variable Costs Indirect labor $13,920 Indirect materials 9,320 Utilities 4,240 Fixed Costs Supervision $3,600 Depreciation 1,000 Property taxes 900 MYERS COMPANY Manufacturing Overhead Flexible Budget Report For the Month Ended July 31, 2017 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs MYERS COMPANY Manufacturing Overhead Flexible Budget Report For the Month Ended July 31, 2017 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs