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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 Indirect materials Utilities $1.30 Indirect labor Indirect materials Utilities Fixed overhead costs per month are Supervision $4,300, Depreciation $2,000, and Property Taxes $600. The company believes it will normally operate in a range of 6.100-10,000 direct labor hours per month. Assume that in July 2020, Myers Company incurs the following manufacturing overhead costs. Variable Costs 0.80 0.30 Fixed Costs $11,050 Supervision 6,790 Depreciation 2,180 Property taxes $4,300 2,000 600

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 Indirect materials Utilities $1.30 Indirect labor Indirect materials Utilities Fixed overhead costs per month are Supervision $4,300, Depreciation $2,000, and Property Taxes $600. The company believes it will normally operate in a range of 6.100-10,000 direct labor hours per month. Assume that in July 2020, Myers Company incurs the following manufacturing overhead costs. Variable Costs 0.80 0.30 Fixed Costs $11,050 Supervision 6,790 Depreciation 2,180 Property taxes $4,300 2,000 600

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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(a) Prepare a flexible budget performance report, assuming that the company worked 8.700 direct labor hours during the month. (List variable costs before fixed costs) Direct Labor Hours Variable Costs Indirect Labor Indiruct Materials Utilities Total Variable Costs Foxed Costs Supervision Depreciation Property Taxes Total Fixed Costs Total Costs Direct Labor Hours Variable Costs Indirect Labor Indirect Materials Utilities Total Variable Costs Fixed Costa Supervision Depreciation Froperty Taxas V Total Fixed Costs Total Costs V V eTextbook and Media $ Budget S 0000 Budget 6100 7930 4300 4880 2000 1830 14640 600 6900 8700 4300 2000 600 21540 11310 MYERS COMPANY Manufacturing Overhead Flexible Budget Report For the Month Ended July 31, 2020 6960 2610 20880 6900 1 27780 Actual Costs $ 0000 $ Actual Costs (b) Prepare a flexible budget performance report, assuming that the company worked 8.100 direct labor hours during the month. (List variable costs before fixed costs) 7400 0000 CODO 9620 4300 5920 2000 2220 17760 49001 600 MYERS COMPANY Manufacturing Overhead Flexible Budget Report For the Month Ended July 31, 2020 4300 10000 2000 600 24660 13000 6900 8000 3000 24000 I 30900 $ 0000 -1690 1040 392 -3120 0000 Neither Favorable nor Unfavorable -1690 -1040 390 Difference Favorable Unfavorable -3120 1 4 3120 A Unfavorable Unfavorabi Ufavorable Unfavoratie Neier Favoratie nor Unfavorable M Neither Favorable nor Unfavorable Neither Favorable nor Unfavorable V Neither Favorable nor Unfavorabis Neither Favorable nor Uefavorable v Unfavorable Difference Favorable Unfavorable Uefavorable Unfavorable Favorable Unfavorable Neither Favorable nor Unfavorable Neither Favorable nor Unfavorable V Neither Favorable nor Unfavorable v Neither Favorable nor Unfavorable Unfavorable
Transcribed Image Text:(a) Prepare a flexible budget performance report, assuming that the company worked 8.700 direct labor hours during the month. (List variable costs before fixed costs) Direct Labor Hours Variable Costs Indirect Labor Indiruct Materials Utilities Total Variable Costs Foxed Costs Supervision Depreciation Property Taxes Total Fixed Costs Total Costs Direct Labor Hours Variable Costs Indirect Labor Indirect Materials Utilities Total Variable Costs Fixed Costa Supervision Depreciation Froperty Taxas V Total Fixed Costs Total Costs V V eTextbook and Media $ Budget S 0000 Budget 6100 7930 4300 4880 2000 1830 14640 600 6900 8700 4300 2000 600 21540 11310 MYERS COMPANY Manufacturing Overhead Flexible Budget Report For the Month Ended July 31, 2020 6960 2610 20880 6900 1 27780 Actual Costs $ 0000 $ Actual Costs (b) Prepare a flexible budget performance report, assuming that the company worked 8.100 direct labor hours during the month. (List variable costs before fixed costs) 7400 0000 CODO 9620 4300 5920 2000 2220 17760 49001 600 MYERS COMPANY Manufacturing Overhead Flexible Budget Report For the Month Ended July 31, 2020 4300 10000 2000 600 24660 13000 6900 8000 3000 24000 I 30900 $ 0000 -1690 1040 392 -3120 0000 Neither Favorable nor Unfavorable -1690 -1040 390 Difference Favorable Unfavorable -3120 1 4 3120 A Unfavorable Unfavorabi Ufavorable Unfavoratie Neier Favoratie nor Unfavorable M Neither Favorable nor Unfavorable Neither Favorable nor Unfavorable V Neither Favorable nor Unfavorabis Neither Favorable nor Uefavorable v Unfavorable Difference Favorable Unfavorable Uefavorable Unfavorable Favorable Unfavorable Neither Favorable nor Unfavorable Neither Favorable nor Unfavorable V Neither Favorable nor Unfavorable v Neither Favorable nor Unfavorable Unfavorable
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 Indirect materials Utilities $1.30 Variable Costs Indirect labor Indirect materials Utilities 0.80 Fixed overhead costs per month are Supervision $4,300, Depreciation $2,000, and Property Taxes $600. The company believes it will normally operate in a range of 6,100-10,000 direct labor hours per month. Assume that in July 2020. Myers Company incurs the following manufacturing overhead costs. 0.30 Fixed Costs Supervision Depreciation $11,050 6,790 2,180 Property taxes $4,300 2,000 600
Transcribed Image Text: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 Indirect materials Utilities $1.30 Variable Costs Indirect labor Indirect materials Utilities 0.80 Fixed overhead costs per month are Supervision $4,300, Depreciation $2,000, and Property Taxes $600. The company believes it will normally operate in a range of 6,100-10,000 direct labor hours per month. Assume that in July 2020. Myers Company incurs the following manufacturing overhead costs. 0.30 Fixed Costs Supervision Depreciation $11,050 6,790 2,180 Property taxes $4,300 2,000 600
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