A. Prepare a flexible overhead budget based on the following amounts produced. (Hint: Indirect materials, indirect labor, utilities, and maintenance are variable costs. The other budgeted costs are fixed costs.) (Round unit costs to 2 decimal places, e.g. 2.25. List variable costs before fixed costs.)

(1) 127,000 units

(2) 128,000 units

(3) 129,000 units

(4) 130,000 units

(5) 131,000 unit

B. Prepare a flexible budget report showing the differences (favorable and unfavorable) in manufacturing overhead costs for the month of March. (List variable costs before fixed costs. Do not leave any answer field blank. Enter 0 for amounts.)

C. Prepare a responsibility report for the manufacturing overhead for March, assuming only variable costs are controllable.

Waterways Corporation is continuing its budget preparations. Waterways had the following static budget and actual overhead costs for March. Waterways produced 130,000 units in March rather than the budgeted number of units. WATERWAYS CORPORATION Manufacturing Overhead Flexible Budget For the Month of March 2017 WATERWAYS CORPORATION Manufacturing Overhead Flexible Budget Report For the Month of March 2017 Favorable Unfavorable Neither Favorable Budget Actual nor Unfavorable