Question
Chubbs Inc.s manufacturing overhead budget for the first quarter of 2017 contained the following data. Variable Costs Fixed Costs Indirect materials $11,300 Supervisory salaries $36,600
Chubbs Inc.s manufacturing overhead budget for the first quarter of 2017 contained the following data.
| Variable Costs | Fixed Costs | ||
| Indirect materials | $11,300 | Supervisory salaries | $36,600 |
| Indirect labor | 10,600 | Depreciation | 7,700 |
| Utilities | 7,700 | Property taxes and insurance | 8,000 |
| Maintenance | 5,700 | Maintenance | 5,300 |
Actual variable costs were indirect materials $15,300, indirect labor $9,300, utilities $9,600, and maintenance $5,100. Actual fixed costs equaled budgeted costs except for property taxes and insurance, which were $9,100. 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.
(a)Prepare a manufacturing overhead flexible budget report for the first quarter.(List variable costs before fixed costs.)
| CHUBBS INC. Manufacturing Overhead Flexible Budget Report For the Quarter Ended March 31, 2017 | ||||
| Difference | ||||
| Budget | Actual | Favorable Unfavorable Neither Favorable nor Unfavorable | ||
| DepreciationIndirect LaborTotal Variable CostsTotal Fixed CostsTotal CostsFixed CostsIndirect MaterialsProperty Taxes and InsuranceUtilitiesMaintenanceSupervisory SalariesVariable Costs | ||||
| Indirect LaborProperty Taxes and InsuranceFixed CostsDepreciationTotal CostsMaintenanceUtilitiesIndirect MaterialsSupervisory SalariesTotal Fixed CostsTotal Variable CostsVariable Costs | $ | $ | $ | FavorableUnfavorableNeither Favorable nor Unfavorable |
| Supervisory SalariesTotal CostsIndirect LaborDepreciationMaintenanceTotal Fixed CostsUtilitiesTotal Variable CostsIndirect MaterialsVariable CostsProperty Taxes and InsuranceFixed Costs | FavorableUnfavorableNeither Favorable nor Unfavorable | |||
| Total Fixed CostsFixed CostsIndirect LaborMaintenanceVariable CostsIndirect MaterialsUtilitiesTotal Variable CostsProperty Taxes and InsuranceSupervisory SalariesTotal CostsDepreciation | FavorableUnfavorableNeither Favorable nor Unfavorable | |||
| Total Variable CostsUtilitiesProperty Taxes and InsuranceMaintenanceTotal Fixed CostsSupervisory SalariesVariable CostsIndirect LaborTotal CostsDepreciationFixed CostsIndirect Materials | FavorableUnfavorableNeither Favorable nor Unfavorable | |||
| Supervisory SalariesVariable CostsDepreciationTotal CostsTotal Fixed CostsFixed CostsIndirect LaborTotal Variable CostsIndirect MaterialsMaintenanceProperty Taxes and InsuranceUtilities | FavorableUnfavorableNeither Favorable nor Unfavorable | |||
| Indirect LaborTotal Fixed CostsTotal CostsUtilitiesFixed CostsTotal Variable CostsVariable CostsProperty Taxes and InsuranceDepreciationIndirect MaterialsMaintenanceSupervisory Salaries | ||||
| Total CostsIndirect LaborTotal Variable CostsMaintenanceSupervisory SalariesUtilitiesTotal Fixed CostsIndirect MaterialsFixed CostsVariable CostsProperty Taxes and InsuranceDepreciation | FavorableUnfavorableNeither Favorable nor Unfavorable | |||
| Total Variable CostsSupervisory SalariesProperty Taxes and InsuranceTotal CostsTotal Fixed CostsUtilitiesVariable CostsDepreciationFixed CostsIndirect LaborIndirect MaterialsMaintenance | FavorableUnfavorableNeither Favorable nor Unfavorable | |||
| Total CostsFixed CostsVariable CostsIndirect LaborDepreciationIndirect MaterialsSupervisory SalariesTotal Fixed CostsTotal Variable CostsProperty Taxes and InsuranceMaintenanceUtilities | FavorableUnfavorableNeither Favorable nor Unfavorable | |||
| Indirect MaterialsDepreciationFixed CostsMaintenanceTotal Variable CostsSupervisory SalariesIndirect LaborProperty Taxes and InsuranceTotal Fixed CostsTotal CostsUtilitiesVariable Costs | FavorableUnfavorableNeither Favorable nor Unfavorable | |||
| Total Variable CostsIndirect LaborVariable CostsSupervisory SalariesUtilitiesMaintenanceProperty Taxes and InsuranceDepreciationFixed CostsTotal Fixed CostsIndirect MaterialsTotal Costs | FavorableUnfavorableNeither Favorable nor Unfavorable | |||
| Total CostsIndirect LaborUtilitiesTotal Fixed CostsTotal Variable CostsDepreciationFixed CostsIndirect MaterialsProperty Taxes and InsuranceVariable CostsMaintenanceSupervisory Salaries | $ | $ | $ | FavorableUnfavorableNeither Favorable nor Unfavorable |
(b)Prepare a responsibility report for the first quarter.
| CHUBBS INC. Manufacturing Overhead Responsibility Report For the Quarter Ended March 31, 2017 | ||||
| Difference | ||||
| Controllable Costs | Budget | Actual | Favorable Unfavorable Neither Favorable nor Unfavorable | |
| DepreciationSupervisory SalariesUtilitiesMaintenanceProperty Taxes and InsuranceIndirect LaborIndirect Materials | $ | $ | $ | FavorableUnfavorableNeither Favorable nor Unfavorable |
| Indirect MaterialsProperty Taxes and InsuranceDepreciationSupervisory SalariesIndirect LaborMaintenanceUtilities | FavorableUnfavorableNeither Favorable nor Unfavorable | |||
| UtilitiesSupervisory SalariesProperty Taxes and InsuranceMaintenanceDepreciationIndirect MaterialsIndirect Labor | FavorableUnfavorableNeither Favorable nor Unfavorable | |||
| DepreciationUtilitiesProperty Taxes and InsuranceSupervisory SalariesIndirect MaterialsIndirect LaborMaintenance | FavorableUnfavorableNeither Favorable nor Unfavorable | |||
| Indirect MaterialsDepreciationIndirect LaborMaintenanceSupervisory SalariesUtilitiesProperty Taxes and Insurance | FavorableUnfavorableNeither Favorable nor Unfavorable | |||
| $ | $ | $ | FavorableUnfavorableNeither Favorable nor Unfavorable |
|
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Global Strategy
Authors: Mike W. Peng
5th Edition
0357512367, 978-0357512364
