Using the information in E11-19, assume that in July 2016, 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 Indirect labour Indirect materials Utilities $6,100 4,300 3,200 Supervision Depreciation Property taxes $4,000 3,000 800