Yosu Enterprises’ manufacturing overhead budget for the first quarter of 2020 contained the following data.

Actual variable costs were indirect materials W13,500,000 indirect labor W9,500,000, utilities W8,700,000, and maintenance W5,000,000. Actual fixed costs equaled budgeted costs except for property taxes and insurance, which were W8,300,000. 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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Fixed Costs Variable Costs Supervisory salaries Depreciation Property taxes and insurance Indirect materials W12,000,000 10,000,000 W36,000,000 7,000,000 Indirect labor Utilities 8,000,000 8,000,000 5,000,000 Maintenance 6,000,000 Maintenance