Flexible Budget Application The cutting department of Liberty Manufacturing Company operated during September 2016 with the following manufacturing overhead cost budget based on 6,000 hours of monthly productive capacity: Liberty Manufacturing Company Cutting Department Overhead Budget (6,000 Hours) For the Month of September 2016 Variable costs: Factory supplies $48,000 Indirect labor 72,000 Utilities (usage charge) 36,000 Patent royalties on secret process 144,000 Total variable overhead $300,000 Fixed costs: Supervisory salaries 96,000 Depreciation on factory equipment 140,000 Factory taxes 40,000 Factory insurance 24,000 Utilities (base charge) 32,000 Total fixed overhead 332000 Total manufacturing overhead 5632.000 Support The cutting department was operated for 5,500 hours during September and incurred the following manufacturing overhead costs Factory Supplies 5000100 Indirector 67,200 Uite curage factor 38100 Type here to search f HD - 1080 The cutting department was operated for 5,500 hours during September and incurred the following manufacturing overhead costs: Factory supplies $40,400 Indirect labor 67,200 Utilities (usage factor) 38,100 Utilities (base factor) 32,000 Patent royalties 134,000 Supervisory salaries 96,000 Depreciation on factory equipment 140,000 Factory taxes 43.400 Factory insurance 27,000 Total manufacturing overhead incurred 5618 100 Support Using a flexible budgeting approach, prepare a performance report for the cutting department for September 2016, comparing actual overhead costs with budgeted overhead costs for 5,500 hours. Separate overhead costs into variable and fixed components and show the amounts of any variances between actual and budgeted amounts. Do not use negative signs with your answers below. Do not round until your final answer. Round answers to nearest whole number, if applicable. Select either U for Unfavorable or F for Favorable using the drop down box next to each of your variance answers. Liberty Manufacturing Company Polishing Department Performance Report - Manufacturing Overhead For the Month Ended September 30, 2016 Budget htto/mybusiness course.com/supportin_tor 500 hours) Variances Type here to search HH HB - 1080 Do not use negative signs with your answers below. Do not round until your final answer. Round answers to nearest whole number, if applicable. Select either Ufor Unfavorable or F for Favorable using the drop down box next to each of your variance answers. Liberty Manufacturing Company Polishing Department Performance Report - Manufacturing Overhead For the Month Ended September 30, 2016 Budget Actual Costs (5,500 hours) Variances Variable costs: Factory supplies $ 0 $ 0 $ 0 Indirect labor 0 0 Utilities 0 Patent royalties Total variable overhead 0 0 Fixed costs: Supervisory salaries 0 Depreciation on equipment Factory taxes 0 Factory Insurance 0 Utilities Total fixed overhead 0 Total overhead costs O $ 0$ Support 0 0 0 0 0 0 0 a . 0 OOO . 0 0 0 0 O Departmental Income Statement The following information was obtained from the ledger of Woodfield Candies, Inc., at the end of 2016 Support Woodfield Candies, Inc. Trial Balance December 31, 2016 Debit Credit Cash $46,000 Accounts receivable (net) 156,000 Inventory December 31, 2016 180,000 Equipment and fixtures (net) 540,000 Accounts payable $108,000 Common stock 450,000 Retained earnings 180,000 Revenue department X 865.000 Revenue department 371,000 Cost of goods 2 Business Course My Subscriptions VOU 420,000 216,000 200,000 54,000 Cost of goods sold - department Cost of goods sold - department Y Sales salaries expense Advertising expense Insurance expense Uncollectible accounts expense Occupancy expense Office and other administrative expense 24,000 Support 9,000 36,000 93,000 $1,974.000 $1,974,000 Woodfield analyzes its operating expenses at the end of each period in order to prepare an income statement that will exhibit departmental contribution to common expenses. From payroll records, advertising copy, and other records, the following tabulation was obtained: Traceable Expense Dept. X Dept. Y Common Expense Sales Salatlesexense 5151.000 549.000 Time 11 My Subscriptions $22,000 Business Course Sales salaries expense Advertising expense Insurance expense Uncollectible accounts expense Occupancy expense Office and other administrative expense $151,000 $49.000 22,000 10,000 15,000 9,000 6,000 3,000 36,000 64,000 16,000 13,000 Support OOO 0 Prepare a departmental income statement for Woodfield Candies, Inc., showing departmental contribution to common expenses, assuming an overall income tax rate of 35%. Do not use negative signs with your answers below. Woodfield Candies, Inc. Departmental Income Statement For the Year Ended December 31, 2016 Dept. X Dept. Y Total Sales $ 0$ 0$ 0 Cost of goods sold 0 0 0 Gross profit 0 0 Operating expenses Sales salaries expense 0 0 Advertising expense D Insurance expense 0 Uncollectible accounts expense 0 Office and other administrative expense 0 0 Traceable operating expenses 0 0 Contribution to common expenses 0 0 Common expenses 0 Income before tax D Income tax expense 0 0 Type here to search OOOOOOO