The manufacturing overhead budget for Fleming Company contains the following items. Variable costs Fixed costs Indirect materials $16,280 Supervision $12,600 Indirect labor 8,880 Inspection costs 700 Maintenance expense 7,400 Insurance expense 1,500 Manufacturing supplies 4,440 Depreciation 11,100 Total variable $37,000 Total fixed $25,900 The budget was based on an estimated 1,480 units being produced. During the past month, 1,110 units were produced, and the following costs incurred. Variable costs Fixed costs Indirect materials $16,700 Supervision $13,600 Indirect labor 10,000 Inspection costs 900 Maintenance expense 6,100 Insurance expense 1,600 Manufacturing supplies 3,700 Depreciation 10,900 Total variable $36,500 Total fixed $27,000

Prepare a responsibility report. Include only the costs that would have been controllable by Mr. Bedner. Assume that the supervision cost above includes Mr. Bedners salary of $7,000, both at budget and actual.

FLEMING COMPANY Production Department Manufacturing Overhead Responsibility Report For the Month Ended Difference Favorable Unfavorable Neither favorable nor unfavorable Controllable Cost Budget Actual