Data concerning manufacturing overhead for Wilson 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 at the department level are controllable The flexible budget formula and the cost and activity for the months of July and August are as follows: Flexible Budget Per Direct Labor Hour Actual Costs and Activity August 7,000 July 6,000 Direct labor hours Overhead costs Variable Indirect materials Indirect labor Factory supplies $3.50 6.00 1.00 20,500 25,100 40,700 8,200 39,500 7,600 Fixed Depreciation Supervision Property taxes $20,000 25,000 10,000 15,000 26,000 12,000 $117,600 127,000 15,000 23,000 12,000 Total costs Prepare the responsibility reports for the Mixing Department for each month. WILSON INDUSTRIES Mixing Department Manufacturing Overhead Cost Responsibility Report For the Months of July and August August July Difference Favorable (F) Unfavorable (U) Not Applicable (NA) Actual Budget Actual Controllable Cost Budget