Chubbs Inc.’s manufacturing overhead budget for the first quarter of 2020 contained the following data.

Actual variable costs were indirect materials $13,500, indirect labor $9,500, utilities $8,700, and maintenance $5,000. Actual fixed costs equaled budgeted costs except for property taxes and insurance, which were $8,300. The actual activity level equaled the budgeted level. All costs are considered controllable by the production department manager except for depreciation, and property taxes and insurance.

Instructions

a. Prepare a manufacturing overhead flexible budget report for the first quarter.

b. Prepare a responsibility report for the first quarter.

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Variable Costs Fixed Costs Indirect materials $12,000 10,000 8,000 Supervisory salaries Depreciation Property taxes and insurance Maintenance $36,000 7,000 Indirect labor Utilities 8,000 Maintenance 6,000 5,000