Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Exercise 10-9 LowellCompanys manufacturing overhead budget for the first quarter of 2014 contained the following data. Variable Costs Fixed Costs Indirect materials $11,144 Supervisory salaries

Exercise 10-9

LowellCompanys manufacturing overhead budget for the first quarter of 2014 contained the following data.

Variable Costs Fixed Costs
Indirect materials $11,144 Supervisory salaries $36,094
Indirect labor 10,276 Depreciation 6,299
Utilities 7,459 Property taxes and insurance 7,638
Maintenance 5,703 Maintenance 5,009

Actual variable costs were: indirect materials $14,957, indirect labor $9,525, utilities $9,626, and maintenance $4,730. Actual fixed costs equaled budgeted costs except for property taxes and insurance, which were $8,905. 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.)

LOWELL COMPANY Manufacturing Overhead Flexible Budget Report For the Quarter Ended March 31, 2014

(Difference

BudgetFavorable F Unfavorable U Neither Favorable nor Unfavorable N (THIS WOULD BE PLACED IN LAST COLUMN NEXT TO THE $ IN THE 3RD Row)****

Budget Actual
Indirect LaborUtilitiesSupervisory SalariesIndirect MaterialsMaintenanceFixed CostsDepreciationProperty Taxes and InsuranceTotal CostsTotal Variable CostsTotal Fixed CostsVariable Costs
Total CostsSupervisory SalariesProperty Taxes and InsuranceMaintenanceTotal Variable CostsUtilitiesDepreciationFixed CostsIndirect LaborIndirect MaterialsTotal Fixed CostsVariable Costs $ $ $ FUN
Total Variable CostsSupervisory SalariesIndirect LaborUtilitiesMaintenanceVariable CostsProperty Taxes and InsuranceTotal CostsFixed CostsTotal Fixed CostsDepreciationIndirect Materials FUN
MaintenanceProperty Taxes and InsuranceTotal Variable CostsIndirect LaborDepreciationTotal CostsTotal Fixed CostsUtilitiesVariable CostsIndirect MaterialsSupervisory SalariesFixed Costs FUN
Fixed CostsIndirect LaborDepreciationMaintenanceTotal CostsIndirect MaterialsProperty Taxes and InsuranceSupervisory SalariesTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs FUN
Property Taxes and InsuranceFixed CostsSupervisory SalariesTotal CostsIndirect LaborMaintenanceTotal Fixed CostsTotal Variable CostsUtilitiesVariable CostsIndirect MaterialsDepreciation FUN
Total Fixed CostsUtilitiesIndirect MaterialsVariable CostsDepreciationFixed CostsIndirect LaborProperty Taxes and InsuranceMaintenanceSupervisory SalariesTotal CostsTotal Variable Costs
Property Taxes and InsuranceUtilitiesVariable CostsTotal Fixed CostsDepreciationFixed CostsSupervisory SalariesTotal CostsIndirect LaborTotal Variable CostsIndirect MaterialsMaintenance FUN
UtilitiesMaintenanceFixed CostsTotal Variable CostsIndirect LaborTotal CostsProperty Taxes and InsuranceDepreciationTotal Fixed CostsSupervisory SalariesVariable CostsIndirect Materials FUN
Variable CostsProperty Taxes and InsuranceIndirect MaterialsFixed CostsIndirect LaborDepreciationMaintenanceSupervisory SalariesTotal Fixed CostsTotal CostsTotal Variable CostsUtilities FUN
DepreciationMaintenanceFixed CostsProperty Taxes and InsuranceIndirect LaborIndirect MaterialsSupervisory SalariesTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs FUN
Total Fixed CostsMaintenanceTotal Variable CostsUtilitiesProperty Taxes and InsuranceTotal CostsIndirect MaterialsVariable CostsSupervisory SalariesDepreciationFixed CostsIndirect Labor FUN
Indirect LaborTotal Fixed CostsVariable CostsTotal Variable CostsIndirect MaterialsUtilitiesMaintenanceDepreciationTotal CostsProperty Taxes and InsuranceFixed CostsSupervisory Salaries $ $ $ FUN

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

LOWELL COMPANY Manufacturing Overhead Responsibility Report For the Quarter Ended March 31, 2014
Difference
Controllable Costs Budget Actual Favorable F Unfavorable U Neither Favorable nor Unfavorable N
UtilitiesIndirect LaborMaintenanceDepreciationSupervisory SalariesProperty Taxes and InsuranceIndirect Materials $ $ $ FUN
Supervisory SalariesProperty Taxes and InsuranceIndirect MaterialsDepreciationIndirect LaborMaintenanceUtilities FUN
MaintenanceIndirect LaborProperty Taxes and InsuranceSupervisory SalariesDepreciationIndirect MaterialsUtilities FUN
Supervisory SalariesDepreciationUtilitiesIndirect MaterialsIndirect LaborProperty Taxes and InsuranceMaintenance FUN
MaintenanceIndirect LaborIndirect MaterialsProperty Taxes and InsuranceSupervisory SalariesUtilitiesDepreciation FUN
$ $ $ FUN

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting with International Financial Reporting Standards

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

4th edition

1119504309, 1-119-50340-8, 9781119503408 , 978-1119504306

More Books

Students also viewed these Accounting questions