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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 0.90 Fixed overhead costs per month are Supervision $4,300, Depreciation $1,900, and Property Taxes $500. The company believes it will normally operate in a range of 6,400-9,400 direct labor hours per month. Assume that in July 2020, Myers Company incurs the following manufacturing overhead costs. Variable Costs Indirect labor 0.40 $10,670 Fixed Costs Supervision $4,300

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 0.90 Fixed overhead costs per month are Supervision $4,300, Depreciation $1,900, and Property Taxes $500. The company believes it will normally operate in a range of 6,400-9,400 direct labor hours per month. Assume that in July 2020, Myers Company incurs the following manufacturing overhead costs. Variable Costs Indirect labor 0.40 $10,670 Fixed Costs Supervision $4,300

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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Please solve both a and b questions 

(b) Prepare a flexible budget performance report, assuming that the company worked 7,800 direct labor hours during the month. (List variable costs before fixed costs.) Budget MYERS COMPANY Manufacturing Overhead Flexible Budget Report For the Month Ended July 31, 2020 Actual Costs Difference Favorable Unfavorabl Neither Favor nor Unfavora
Transcribed Image Text:(b) Prepare a flexible budget performance report, assuming that the company worked 7,800 direct labor hours during the month. (List variable costs before fixed costs.) Budget MYERS COMPANY Manufacturing Overhead Flexible Budget Report For the Month Ended July 31, 2020 Actual Costs Difference Favorable Unfavorabl Neither Favor nor Unfavora
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 0.90 0.40 Fixed overhead costs per month are Supervision $4,300, Depreciation $1,900, and Property Taxes $500. The company believes it will normally operate in a range of 6,400-9,400 direct labor hours per month. Assume that in July 2020, Myers Company incurs the following manufacturing overhead costs. Variable Costs Indirect labor Indirect materials Utilities $10,670 7,450 2,950 Fixed Costs Supervision Depreciation Property taxes $4,300 1,900 500 (a) Prepare a flexible budget performance report, assuming that the company worked 8,400 direct labor hours during the month. (List unrinhle coste hofnee fived earte).
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 0.90 0.40 Fixed overhead costs per month are Supervision $4,300, Depreciation $1,900, and Property Taxes $500. The company believes it will normally operate in a range of 6,400-9,400 direct labor hours per month. Assume that in July 2020, Myers Company incurs the following manufacturing overhead costs. Variable Costs Indirect labor Indirect materials Utilities $10,670 7,450 2,950 Fixed Costs Supervision Depreciation Property taxes $4,300 1,900 500 (a) Prepare a flexible budget performance report, assuming that the company worked 8,400 direct labor hours during the month. (List unrinhle coste hofnee fived earte).
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