Waterways Corporation is continuing its budget preparations. Waterways had the following static budget and actual overhead for March. (Refer to Waterways 9 if you are uncertain about variable versus fixed costs.)

Waterways Corporation Waterways Corporation

Manufacturing Overhead Budget Manufacturing Overhead Costs (Actual)

(Static) For the Month of March For the Month of March

Budgeted Production (Units)	118,000		Production in units	118,500
Indirect materials	$ 7,080		Indirect materials	$ 7,100
Indirect labor	11,000		Indirect labor	11,825
Utilities	10,620		Utilities	10,700
Maintenance	5,900		Maintenance	5,990
Salaries	42,000		Salaries	42,000
Depreciation	16,800		Depreciation	16,800
Property taxes	2,500		Property taxes	2,500
Insurance	1,200		Insurance	1,250
Janitorial	1,300		Janitorial	1,300
Total budgeted costs	$98,400		Total costs	$99,465

Waterways produced 118,500 units in March rather than the budgeted number of units.

Instructions:

a. Prepare a flexible budget overhead budget based on the following amounts produced.

(1) 115,000 units

(2) 116,000 units

(3) 117,000 units

(4) 118,000 units

(5) 119,000 units

b. Prepare a flexible budget performance report showing the differences (favorable and unfavorable) in manufacturing overhead costs for the month of March.

c. Prepare a responsibility report for the manufacturing overhead for March, assuming only variable costs are controllable.

This assignment must be completed on an Excel worksheet, using formulas so that you gain the experience of actually creating Excel worksheets. Once completed, you submit it here by uploading your Excel file. Please include your name on the spreadsheet.