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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.)
Locate a payroll processing company. You may either contact one in person, by telephone, or conduct an Internet search. Write a brief report describing the advantages and disadvantages of using a payroll processing company.
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