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