Exercise 25-10

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

Variable Costs				Fixed Costs
Indirect materials		$11,100		Supervisory salaries		$35,400
Indirect labor		10,700		Depreciation		7,500
Utilities		7,800		Property taxes and insurance		7,300
Maintenance		5,700		Maintenance		4,000

Actual variable costs were indirect materials $15,100, indirect labor $9,500, utilities $9,600, and maintenance $5,200. Actual fixed costs equaled budgeted costs except for property taxes and insurance, which were $8,300. 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.)

Actual nor Unfavorable SUNLAND INC. Manufacturing Overhead Responsibility Report For the Quarter Ended March 31, 2020 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Controllable Costs Budget Actual