What would a full flexible budget report for august

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Reference no: EM132523841

Sunshine Company uses a flexible budget for manufacturing overhead based on machine hours.

Variable manufacturing overhead costs per machine hour are as follows:

Indirect labor $5.00

Indirect materials 2.50

Maintenance0 .50

Utilities 0.30

Fixed overhead costs per month are:

Supervision $600

Insurance 200

Property taxes 300

Depreciation 900

The company believes it will normally operate in a range of 2,000 to 4,000 machine hours per month. During the month of August 2019, the company incurs the following manufacturing overhead costs:

Indirect labor $14,000

Indirect materials 8,100

Maintenance 1,400

Utilities 950

Supervision 720

Insurance 200

Property taxes 300

Depreciation 930

Question 1: What would a full flexible budget report for August 2019 showing actual performance against budget, assuming that the company used 3,000 machine hours during August, with a full variance analysis look like?

Reference no: EM132523841

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