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Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows.

Indirect labor		$1.10
Indirect materials		0.50
Utilities		0.40

Fixed overhead costs per month are Supervision $3,900, Depreciation $1,100, and Property Taxes $700. The company believes it will normally operate in a range of 5,9009,800 direct labor hours per month. Assume that in July 2020, Myers Company incurs the following manufacturing overhead costs.

Variable Costs				Fixed Costs
Indirect labor		$9,050		Supervision		$3,900
Indirect materials		4,070		Depreciation		1,100
Utilities		2,990		Property taxes		700

(a) Prepare a flexible budget performance report, assuming that the company worked 8,500 direct labor hours during the month

(b) Prepare a flexible budget performance report, assuming that the company worked 7,800 direct labor hours during the month. (List variable costs before fixed costs.)

MYERS COMPANY Manufacturing Overhead Flexible Budget Report For the Month Ended July 31, 2020 MYERS COMPANY Manufacturing Overhead Flexible Budget Report For the Month Ended July 31, 2020 Difference Difference Part a Part b Favorable Unfavorable Neither Favorable nor Unfavorable Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs Budget Actual Costs Direct Labor Hours Variable Costs Indirect Labor Favorable Indirect Materials Favorable Utilities Unfavorable Total Variable Costs Favorable Fixed Costs Supervision Depreciation Property Taxes Total Fixed Costs Total Costs

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