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		$11,300		Supervisory salaries		$37,000
Indirect labor		10,000		Depreciation		6,100
Utilities		7,200		Property taxes and insurance		7,300
Maintenance		5,500		Maintenance		4,200

Actual variable costs were indirect materials $14,600, indirect labor $9,400, utilities $9,200, and maintenance $4,800. Actual fixed costs equaled budgeted costs except for property taxes and insurance, which were $8,200. 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.)

(b) Prepare a responsibility report for the first quarter.