Bramble Company uses a flexible budget for manufacturing overhead based on direct labor hours. Budgeted variable manufacturing overhead costs per direct labor hour are as follows. Indirect labor Indirect materials Utilities Variable Costs $1.00 0.70 Budgeted fixed overhead costs per month are Supervision $3,360, Depreciation $1,008, and property Taxes $672. The company believes it will normally operate in a range of 5,880-8,400 direct labor hours per month. Assume that in July 2022, Bramble Company incurs the following manufacturing overhead costs. Indirect labor Indirect materials Utilities 0.40 $7,392 Fixed Costs Supervision 4,872 Depreciation 2,688 Property taxes $3,360 1,008 672 (a) Prepare a flexible budget performance report, assuming that the company worked 7,560 direct labor hours during the month. (List variable costs before fixed costs.)

A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It…

A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future…