152,000 Flexible Budget Application The polishing department of Taylor Manufacturing Company operated during April 2016 with the following manufacturing overhead cost budget based on 5,000 hours of monthly productive capacity: Taylor Manufacturing Company Polishing Department Overhead Budget (5,000 Hours) For the Month of April 2016 Variable costs: Factory supplies $100,000 Indirect labor Utilities Patent royalties on secret process 296,000 Total variable overhead $616,000 Fixed costs: Supervisory salaries Depreciation on factory equipment 144,000 Factory taxes 48,000 Factory insurance 32.000 Utilities (base charge) 80,000 Total fixed overhead 464,000 Total manufacturing overhead $1,080,000 68,000 160,000 The polishing department was operated for 4,500 hours during April and incurred the following manufacturing overhead costs: Factory supplies $97,470 Indirect labor 136,110 Utilities (usage factor) 82.800 Utilities (base factor) 96,000 Patent royalties 280,366 Supervisory salaries 167,000 Depreciation on factory equipment 144,000 Factory taxes 55,000 Factory insurance 32,000 Total manufacturing overhead incurred $1,090,746 Using a flexible budgeting approach, prepare a performance report for the polishing department for April 2016, comparing actual overhead costs with budgeted overhead costs for 4,500 hours. Separate overhead costs into variable and fixed components and show the amounts of any variances between actual and budgeted amounts. Do not use negative signs with your answers below. Do not round until your final answer. Round answers to nearest whole number, if applicable. Select either U for Unfavorable or Ffor Favorable using the drop down box next to each of your variance answers. Taylor Manufacturing Company Polishing Department Performance Report - Manufacturing Overhead For the Month Ended April 30, 2016 Actual Costs Budget (4,500 hours) Variances Variable costs: Factory supplies $ 97,470 90,000 Indirect labor 136,110 136,800 Utilities 82,800 61,200 Patent royalties 280,366 266,400 13,966 U Total variable overhead 596,746 554,400 43,726 X U Fixed costs: Supervisory salaries 167,000 144,000 X 23,000 X U Depreciation on equipment 144,000 144,000 Factory taxes 55,000 43,200 X 11,800 X U Factory insurance 32,000 32,000 Utilities 96,000 72,000 X 24,000 X U Total fixed overhead 494,000 417,600 X 58,800 X U Total overhead costs $ 1,090,746 972,000 x $ 161,326 X U $ $ > 7,470 U 690F . 0 . 0 > + $