Budgeted overhead costs for the first quarter of 2020 for the machining department of Breanne Industries Ltd. are as follows: Indirect labour $30,600; property taxes $3,200; indirect materials $24,100; rent $3,600; lubricants $7,900; salaries $25,800; maintenance $13,100; utilities $14,800. Actual costs incurred for the first quarter of 2020 are indirect labour $32,050; indirect materials $26,100; lubricants $6,250; maintenance $11,450; property taxes $3,200; rent $3,600; salaries $25,800; and utilities $15,750. The machining manager cannot control rent, salaries, and property taxes. Prepare a responsibility report for the first quarter of 2020.

Breanne Industries Ltd. Machining Department Responsibility Report For the first quarter of 2020
		Budget		Actual		Difference Favourable Unfavourable Neither Favourable nor Unfavourable
Direct MaterialsDirect LabourMaintenanceControllable CostsUtilitiesTotal Controllable CostsLubricantsIndirect MaterialsIndirect LabourSupervisor Salaries:
Indirect MaterialsIndirect LabourMaintenanceSupervisor SalariesLubricantsControllable CostsDirect LabourDirect MaterialsTotal Controllable CostsUtilities		$		$		$	FavourableNeither Favourable nor UnfavourableUnfavourable
Indirect LabourMaintenanceUtilitiesLubricantsIndirect MaterialsDirect LabourSupervisor SalariesControllable CostsDirect MaterialsTotal Controllable Costs							UnfavourableFavourableNeither Favourable nor Unfavourable
Total Controllable CostsUtilitiesIndirect MaterialsMaintenanceSupervisor SalariesControllable CostsDirect LabourLubricantsDirect MaterialsIndirect Labour							Neither Favourable nor UnfavourableFavourableUnfavourable
Direct LabourTotal Controllable CostsMaintenanceDirect MaterialsControllable CostsLubricantsIndirect MaterialsUtilitiesIndirect LabourSupervisor Salaries							Neither Favourable nor UnfavourableUnfavourableFavourable
Indirect MaterialsTotal Controllable CostsSupervisor SalariesIndirect LabourLubricantsDirect LabourUtilitiesControllable CostsDirect MaterialsMaintenance							UnfavourableNeither Favourable nor UnfavourableFavourable
Indirect LabourLubricantsDirect LabourIndirect MaterialsUtilitiesSupervisor SalariesMaintenanceDirect MaterialsControllable CostsTotal Controllable Costs		$		$		$	Neither Favourable nor UnfavourableFavourableUnfavourable