SANOFI Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows:Indirect Labor$1 Indirect Materials$1 Utilities$0 Fixed Overhead Cost Per Month: Supervision$4.000 Depreciation$1.500 Property Taxes$800 In July 2021, SANOVI Company incurred the following manufacturing Overhead Cost:Variable Cost Fixed Cost Indirect Labor$8.700 Supervision$4.000 Indirect Materials$4.300 Depreciation$1.500 Utilities$3.200 Property Taxes$800 Instructions: (please shows the computation)Prepare a flexible budget performance report, assuming that the company worked 8.800 direct labor hours during the month.Prepare a flexible budget performance report, assuming that the company worked 8.500 direct labor hours during the month.Comment on your findings.

Name: SANOFI Company uses a flexible budget for manufacturing overhead based
Uploaded: 2024-03-20T06:33:06.000Z
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Description: SANOFI Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows:Indirect Labor$1 Indirect Materials$1 Utilities$0 Fixed Overhe

The flexible budget is prepared on to compare the actual results with flexible data of production.…

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Managerial Accounting: The Cornerstone of Business Decision-Making

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Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter10: Standard Costing And Variance Analysis

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SANOFI Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows:

Indirect Labor	$1
Indirect Materials	$1
Utilities	$0

Fixed Overhead Cost Per Month:
Supervision	$4.000
Depreciation	$1.500
Property Taxes	$800

In July 2021, SANOVI Company incurred the following manufacturing Overhead Cost:
Variable Cost		Fixed Cost
Indirect Labor	$8.700		Supervision	$4.000
Indirect Materials	$4.300		Depreciation	$1.500
Utilities	$3.200		Property Taxes	$800

Instructions: (please shows the computation)

Prepare a flexible budget performance report, assuming that the company worked 8.800 direct labor hours during the month.
Prepare a flexible budget performance report, assuming that the company worked 8.500 direct labor hours during the month.
Comment on your findings.

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