Exercise 22-10

Chubbs Inc.'s manufacturing overhead budget for the first quarter of 2017 contained the following data.

Variable Costs Fixed Costs

Indirect materials $11,500 Supervisory salaries $36,400

Indirect labor 10,800 Depreciation 6,800

Utilities 7,400 Property taxes and insurance 7,200

Maintenance 5,600 Maintenance 4,300

Actual variable costs were indirect materials $14,900, indirect labor $9,600, utilities $9,100, and maintenance $4,800. Actual fixed costs equaled budgeted costs except for property taxes and insurance, which were $8,500. 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.

1. Make a manufacturing overhead flexible budget report for the first quarter.(List variable costs before fixed costs.)
2. Make a responsibility report for the first quarter.