Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours. Budgeted variable manufacturing overhead costs per direct labor hour are as follows. Indirect labor $1.00 Indirect materials 0.70 Utilities 0.40 Budgeted fixed overhead costs per month are Supervision $4,000, Depreciation $1,200, and property Taxes $800. The company believes it will normally operate in a range of 7,000-10,000 direct labor hours per month. Assume that in July 2022, Myers Company incurs the following manufacturing overhead costs. Variable Costs Fixed Costs Indirect labor $8,800 Supervision $4,000 Indirect materials 5,800 Depreciation 1,200 Utilities 3,200 Property taxes 800 (a) Prepare a flexible budget performance report, assuming that the company worked 9,000 direct labor hours during the month. (List variable costs before fixed costs.) MYERS COMPANY Manufacturing Overhead Flexible Budget Report
Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours. Budgeted variable manufacturing overhead costs per direct labor hour are as follows. Indirect labor $1.00 Indirect materials 0.70 Utilities 0.40 Budgeted fixed overhead costs per month are Supervision $4,000, Depreciation $1,200, and property Taxes $800. The company believes it will normally operate in a range of 7,000-10,000 direct labor hours per month. Assume that in July 2022, Myers Company incurs the following manufacturing overhead costs. Variable Costs Fixed Costs Indirect labor $8,800 Supervision $4,000 Indirect materials 5,800 Depreciation 1,200 Utilities 3,200 Property taxes 800 (a) Prepare a flexible budget performance report, assuming that the company worked 9,000 direct labor hours during the month. (List variable costs before fixed costs.) MYERS COMPANY Manufacturing Overhead Flexible Budget Report
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours. Budgeted variable manufacturing
overhead costs per direct labor hour are as follows.
Indirect labor
$1.00
Indirect materials
0.70
Utilities
0.40
Budgeted fixed overhead costs per month are Supervision $4,000, Depreciation $1,200, and property Taxes $800. The company
believes it will normally operate in a range of 7,000-10,000 direct labor hours per month.
Assume that in July 2022, Myers Company incurs the following manufacturing overhead costs.
Variable Costs
Fixed Costs
Indirect labor
$8,800
Supervision
$4,000
Indirect materials
5,800
Depreciation
1,200
Utilities
3,200
Property taxes
800
(a) Prepare a flexible budget performance report, assuming that the company worked 9,000 direct labor hours during the month. (List
variable costs before fixed costs.)
MYERS COMPANY
Manufacturing Overhead Flexible Budget Report
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