Using the information in E11-19, assume that in July 2012, Raney Company incurs the following manufacturing overhead costs:

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

Variable Costs Fixed Costs S6,100 Supervision Indirect labour Indirect materials Utilities 4,300 3,200 Depreciation Property taxes $4,000 3,000 800