Question 2

The Mixing Department manager of Sheffield 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		$13,960		Property taxes		$2,870
Indirect materials		9,500		Rent		2,400
Lubricants		2,110		Salaries		13,480
Maintenance		3,910		Utilities		5,470

Actual costs incurred for January 2020 are indirect labor $13,130; indirect materials $10,330; lubricants $1,610; maintenance $3,910; property taxes $2,180; rent $2,400; salaries $13,480; and utilities $6,410. Prepare a responsibility report for January 2020.