Using the information in E24 3, assume that in July 2012, Rooney Company incurs the following manufacturing overhead costs.

Variable Costs

Fixed Costs

Indirect labor

$8,700

Supervision

$4,000

Indirect materials

4,300

Depreciation

1,500

Utilities

3,200

Property taxes

800

Instructions

(a) Prepare a flexible budget performance report, assuming that the company worked 9,000 direct labor hours during the month.

(b) Prepare a flexible budget performance report, assuming that the company worked 8,500 direct labor hours during the month.

(c) Comment on your findings.