Lowell Company’s manufacturing overhead budget for the first quarter of 2014 contained the following data.

Variable Costs Fixed Costs Indirect materials $12,000 Supervisory salaries $36,000 Indirect labor 10,000 Depreciation 7,000 Utilities 8,000 Property taxes and insurance 8,000 Maintenance 6,000 Maintenance 5,000 Actual variable costs were indirect materials $13,900, 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 $8,400. 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 fl exible budget report for the fi rst quarter.

(b) Prepare a responsibility report for the fi rst quarter.

AppendixLO1