Exercise 23-10

Chubbs Inc.s manufacturing overhead budget for the first quarter of 2020 contained the following data.

Variable Costs				Fixed Costs
Indirect materials		$11,900		Supervisory salaries		$36,600
Indirect labor		10,700		Depreciation		6,800
Utilities		7,200		Property taxes and insurance		7,200
Maintenance		5,600		Maintenance		4,800

Actual variable costs were indirect materials $14,500, indirect labor $9,300, utilities $9,000, and maintenance $4,900. Actual fixed costs equaled budgeted costs except for property taxes and insurance, which were $9,100. 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.