Uniliver Inc. uses a flexible budget for manufacturing overhead based on direct labour hours. For 2016 the master overhead budget for the Packaging Department at normal capacity of 300 000 direct labour hours was as follows:

During April 24 000 direct labor hours were worked when 25 000 hours were expected to be worked. The company incurred the following variable costs in April: Indirect labor $30 200, Supplies and lubricants $11 600, Maintenance $17 500, and Power $9 200. Actual fixed overhead costs were the same as monthly budgeted fixed costs.

REQUIRED:

Prepare a flexible budget report for the Packaging Department for April.

Variable Costs Indirect labour $360 000 Supplies and lubricants 150 000 Maintenance 210 000 Power 120 000 $840 000 Fixed Costs Supervision Depreciation Property taxes Insurance $ 60 000 24 000 18 000 12 000 $114 000