Data concerning manufacturing overhead for Analina Industries are presented below. The Mixing Department is a cost center.

An analysis of the overhead costs reveals that all variable costs are controllable by the manager of the Mixing Department and that 50% of supervisory costs are controllable at the department level.

The flexible budget formula and the cost and activity for the months of June and July are as follows:

Flexible Budget Per

Direct Labor Hour Actual Costs and Activity June July

Direct labor hours 6,000 7,000 Overhead Costs Variable Indirect Materials $3.50 $20,500 $25,100 Indirect Labor 6.00 39,500 40,700 Factory Supplies 1.00 7,600 8,200 Fixed Deprechiation $20,000 15,000 15,000 Supervision 25,000 24,000 26,000 Property Taxes 10,000 12,000 12,000 Total Costs 118,600 127,000

Instructions

(a)	Prepare the responsibility reports for the Mixing Department for each month.
(b)	Comment on the manager's performance in controlling costs during the two-month period.