Question
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
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 |
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