Exercise 22-14

The Mixing Department manager of Malone Company is able to control all overhead costs except rent, property taxes, and salaries. Budgeted monthly overhead costs for the Mixing Department, in alphabetical order, are:

Indirect labor		$12,090		Property taxes		$2,900
Indirect materials		9,170		Rent		2,330
Lubricants		3,350		Salaries		14,200
Maintenance		3,520		Utilities		5,500

Actual costs incurred for January 2017 are indirect labor $12,200; indirect materials $12,160; lubricants $1,500; maintenance $3,520; property taxes $2,140; rent $2,330; salaries $14,200; and utilities $6,800. Prepare a responsibility report for January 2017.

MALONE COMPANY Mixing Department Responsibility Report For the Month Ended January 31, 2017
						Difference
Controllable Costs		Budget		Actual		Favorable F Unfavorable U Neither Favorable nor Unfavorable N