Using the information in E10-3, assume that in July 2011, Roche Company incurs the following manufacturing overhead costs.

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 yourfindings.

Transcribed Image Text:

Variable Costs Fixed Costs Indirect labor Indirect materials Utilities $8,700 4,300 3,200 Supervision Depreciation Property taxes $4,000 1,500 800