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Accounting Problem Exercise 24-4 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 0.70 Utilities 0.40 Fixed overhead costs per month are Supervision $ 4,100, Depreciation $ 2,000, and Property Taxes $ 500. The company believes it will normally operate in a range of 7,100 - 12,800 direct labor hours per month.
Assume that in July 2017, Myers Company incurs the following manufacturing overhead costs. Prepare a flexible budget performance report, assuming that the company worked 10,900 direct labor hours during the month. (List variable costs before fixed costs.) Prepare a flexible budget performance report, assuming that the company worked 10,300 direct labor hours during the month. (List variable costs before fixed costs.)
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