Reference no: EM131558179

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.