Managerial Accounting: E24-4 Myers Company uses a flexible budget for manufacturing overhead based

Managerial Accounting
E24-4
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 $4,00, 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.
Variable Costs Fixed Costs
Indirect labor 11,710 Supervision 4,100
Indirect materials 7,460 Depreciation 2,000
Utilities 3,860 Property taxes 500

a. 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.)
b. 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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