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.