Waterways Corporation is continuing its budget preparations. Waterways had the following static budget and actual overhead costs for March. WATERWAYS CORPORATION Manufacturing Overhead Budget (Static) For the Month of March Budgeted production in units 119,000 Budgeted costs Indirect materials $5,950 Indirect labor 14,280 Utilities 11.900 Maintenance 8,330 Salaries 44,200 Depreciation 17,300 Property taxes 3,000 Insurance 1,300 Janitorial 1,700 Total budgeted costs $107,960 WATERWAYS CORPORATION Manufacturing Overhead Costs (Actual For the Month of March Production in units 120,000 Costs Indirect materials $5,984 Indirect labor 14,374 Utilities 12,030 Maintenance 8,381 Salaries 44,200 Depreciation 17,300 Property taxes 3,000 Insurance 1,300 Janitorial 1,700 Total costs $108,269 Waterways produced 120,000 units in March rather than the budgeted number of units. Prepare a flexible overhead budget based on the following amounts produced. (Hint: Indirect materials, indirect labor, utilitites, and maintenance are variable costs. The other budgeted costs are fixed costs.) (Round unit costs to 2 decimal places, e.g. 2.25. List variable costs before fixed costs.) (1) 117,000 units (2) 118,000 units (3) 119,000 units (4) 120,000 units (5) 121,000 units WATERWAYS CORPORATIO Manufacturing Overhead Flexible B For the Month of March Production in Units Variable Costs Indirect Labor Indirect Materials Maintenance Utilities Total Variable Costs Fixed Costs Depreciation Insurance Janitorial Property Taxes Salaries Total Fixed Costs Total Costs Prepare a flexible budget report showing the differences (favorable and unfavorable) in manufacturing overhead costs for the month of March. (List vairble costs before fixed costs.) WATERWAYS CORPORATION Manufacturing Overhead Flexible Budget Report For the Month of March Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Production in Units Variable Costs Favorable Indirect Labor Indirect Materials Maintenance Favorable Favorable Utilities Unfavorable Total Variable Costs Favorable Fixed Costs Depreciation Neither Favorable nor Un Neither Favorable nor Un Insurance Janitorial Property Taxes Neither Favorable nor Un Neither Favorable nor Un Neither Favorable nor Un Salaries Total Fixed Costs Neither Favorable nor Un Total Costs Favorable Prepare a responsibility report for the manufacturing overhead for March, assuming only variable costs are controllable. WATERWAYS CORPORATION Responsibility Report Manufacturing Overhead For the Month of March Favorable Unfavorable Neither Favorable nor Unfavorable Favorable Budget Actual Controllable Cost Indirect Labor Indirect Materials Favorable Maintenance Favorable Utilities Unfavorable HA Favorable