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E23.10 (LO 2, 3), AP Chubbs Inc.'s manufacturing overhead budget for the first quarter of 2022 contained the following data. Prepare flexible budget and
E23.10 (LO 2, 3), AP Chubbs Inc.'s manufacturing overhead budget for the first quarter of 2022 contained the following data. Prepare flexible budget and responsibility report for manufacturing overhead. Variable Costs Indirect materials Indirect labor Utilities Maintenance Fixed Costs $12,000 10,000 Supervisory salaries Depreciation $36,000 8,000 6,000 Property taxes and insurance Maintenance 7,000 8,000 5,000 Actual variable costs were indirect materials $13,500, indirect labor $9,500, utilities $8,700, and maintenance $5,000. Actual fixed costs equaled budgeted costs except for property taxes and insurance, which were $8,300. 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. Instructions a. Prepare a manufacturing overhead flexible budget report for the first quarter. b. Prepare a responsibility report for the first quarter.
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