Sublette Company’s manufacturing overhead budget for the first quarter of 2022 contained the following data:

Actual variable costs were as follows: indirect materials $13,900; indirect labour $9,500; utilities $8,700; and maintenance $5,000. Actual fixed costs equalled the budgeted costs except for property taxes and insurance, which were $8,400. The production department manager can control all costs except for depreciation and property taxes and insurance. 

Instructions

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

b. Prepare a responsibility report for the first quarter.

Transcribed Image Text:

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