Question
Exercise 10-10 (Video) Chubbs Inc.s manufacturing overhead budget for the first quarter of 2020 contained the following data. Variable Costs Fixed Costs Indirect materials $12,000
Exercise 10-10 (Video)
Chubbs Inc.s manufacturing overhead budget for the first quarter of 2020 contained the following data.
Variable Costs | Fixed Costs | |||||
Indirect materials | $12,000 | Supervisory salaries | $36,700 | |||
Indirect labor | 10,900 | Depreciation | 6,700 | |||
Utilities | 7,700 | Property taxes and insurance | 7,800 | |||
Maintenance | 6,000 | Maintenance | 4,400 |
Actual variable costs were indirect materials $14,900, indirect labor $9,500, utilities $9,500, and maintenance $5,400. Actual fixed costs equaled budgeted costs except for property taxes and insurance, which were $8,600. 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, 2020 | |||||||
Difference | |||||||
Budget | Actual | Favorable Unfavorable Neither Favorable nor Unfavorable | |||||
Property Taxes and InsuranceTotal CostsSupervisory SalariesUtilitiesVariable CostsDepreciationTotal Variable CostsTotal Fixed CostsFixed CostsIndirect LaborIndirect MaterialsMaintenance | |||||||
| $ | $ | $ | FavorableUnfavorableNeither Favorable nor Unfavorable | |||
| FavorableUnfavorableNeither Favorable nor Unfavorable | ||||||
| FavorableUnfavorableNeither Favorable nor Unfavorable | ||||||
| FavorableUnfavorableNeither Favorable nor Unfavorable | ||||||
| FavorableUnfavorableNeither Favorable nor Unfavorable | ||||||
| |||||||
| FavorableUnfavorableNeither Favorable nor Unfavorable | ||||||
| FavorableUnfavorableNeither Favorable nor Unfavorable | ||||||
| FavorableUnfavorableNeither Favorable nor Unfavorable | ||||||
| FavorableUnfavorableNeither Favorable nor Unfavorable | ||||||
| FavorableUnfavorableNeither Favorable nor Unfavorable | ||||||
| $ | $ | $ | FavorableUnfavorableNeither Favorable nor Unfavorable |
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