Using the information in E21-3, assume that in July 2012, Thome Company incurs the following manufacturing overhead

Question:

Using the information in E21-3, assume that in July 2012, Thome 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 your findings.