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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 $1.20 0.90 0.40 Fixed overhead costs per month are Supervision $3,600, Depreciation $1,300, and Property Taxes $700. The company believes it will normally operate in a range of 6,000-10,500 direct labor hours per month. Assume that in July 2020, Myers Company incurs the following manufacturing overhead costs.

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 $1.20 0.90 0.40 Fixed overhead costs per month are Supervision $3,600, Depreciation $1,300, and Property Taxes $700. The company believes it will normally operate in a range of 6,000-10,500 direct labor hours per month. Assume that in July 2020, Myers Company incurs the following manufacturing overhead costs.

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 40P: The controller for Muir Companys Salem plant is analyzing overhead in order to determine appropriate...
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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 Indirect labor $1.20 Fixed overhead costs per month are Supervision $3,600, Depreciation $1,300, and Property Taxes $700. The company believes it will normally operate in a range of 6,000-10,500 direct labor hours per month. Assume that in July 2020, Myers Company incurs the following manufacturing overhead costs. Variable Costs Indirect materials 0.90 Utilities 0.40 $10,530 7,970 3,180 Fixed Costs Supervision Depreciation Property taxes $3,600 1,300 700 (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.)
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 Indirect labor $1.20 Fixed overhead costs per month are Supervision $3,600, Depreciation $1,300, and Property Taxes $700. The company believes it will normally operate in a range of 6,000-10,500 direct labor hours per month. Assume that in July 2020, Myers Company incurs the following manufacturing overhead costs. Variable Costs Indirect materials 0.90 Utilities 0.40 $10,530 7,970 3,180 Fixed Costs Supervision Depreciation Property taxes $3,600 1,300 700 (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.)
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