MOH Budget for January, 2003

Variable costs:

Indirect Material (5 TL per DL hour)	5,000
Indirect Labor (4 TL per DL hour)	4,000
Maintenance (1 TL per DL hour)	1,000
Utilities (0,5 TL per DL hour)	500
	10,500

Fixed costs:

Supervisory	2,000
Depreciation	2,000
Insurance	500
Rent	1,000
	5,500

Total MOH Costs 16,000

Company planned to produce 4,000 boxes of ABC boxes in January 2003. Each box requires 15 minutes of direct labour (1/4 DL hour). Managerial accountant prepared the MOH budget for January (presented above).

Actual production was 3,600 boxes and fixed overhead costs were exactly the same, however actual variable overhead costs are: indirect material 4,900 TL; indirect labor 3,400 TL; maintenance 1,100 TL; utilities 550 TL.

Supervisor can control all costs other than supervisory, depreciation and insurance.

Prepare a responsibility report of supervisor for jan 2003