Using the information in E22-3, assume that in July 2014, Thome Company incurs the following manufacturing overhead costs.
Variable Costs Fixed Costs
Indirect Labor $8,800 Supervision $4,000
Indirect Materials $5,300 Depreciation 1,200
Utilities 3,200 Property Taxes 800
(a) Prepare flexible budget performance report, assuming that the company worked 9,000 direct labor hours during the month.
(b) Prepare flexible budget performance report, assuming that the company worked 8,500 direct labor hours during the month.