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Avayai Compoiny uses a fexible budget for manufacturint overhesd based on direct bbor hours Variable...

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Accounting

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Avayai Compoiny uses a fexible budget for manufacturint overhesd based on direct bbor hours Variable manufacturing overhead costs per direct labor hour are as follows Fived overhead costs per month are Supervision \$4,960, Depreciation $1,488, and property Taxes $9.92. The compamy believes it will normally operate in a range of 8,68012,400 direct labor hours per month. Assume that in July 2025, Ayayai Company incurs the follewing manufacturing overhead costs (a) Prepare a flexible budget pectormance report. issuminet that the compary worked 11.160 direct labor hours during the month. (Uist varlable costs before fixcd costs.) (b) Prepare a fexible budget performance report, assuming that the company worked 10,540 direct labor hours during the month, fust variable costs before fixed costs.)

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