ways Continuing Problem (This is a continuation of the Waterways Problem from Chapters 1 through 10.) WCP.11 On July 2. 2020. the accounting staff of Waterways B.C. plant was shocked to discover that their accounting system had been compromised by a brand new computer virus called Dadget. While their software supplier was able to provide a fix within hours of the discovery, they were unable to recover any of their budget data. Now, the accountant was challenged to find a way to deter- mine the budget amounts needed for the flexible budget report that was required for the performance reviews the following week. She thought she would start by looking at what had been reported for the first quarter of the year. The report that printed out was as follows Favourable Unfavourable Difference F U First Quarter 2020 Budget Actual 78,000 $106,000 67,750 49.300 76,200 299,250 $ 4,600 9,250 1,400 13,800 26,250 U U F U U Units produced Variable costs Indirect materials Indirect labour Utilities Maintenance Total variable costs Fixed costs Salaries Depreciation Property taxes Insurance Janitorial Total fixed costs Total overhead II 11 11 11 il 1,000 U 120,000 53,500 7,600 4,100 11,250 196,450 $495,700 U F 200 750 450 $26.700 The accountant was able to collect a few other bits of information. 1. She knew the first-quarter report was developed using the plant's flexible budget for manufacturing costs for 2020. 2. The production supervisor advised her that 73,000 units had been produced during the second quarter. 3. The production accountant provided her with the actual costs for the second quarter. Second Quarter 2020 Actual Utilities 43.700 Maintenance 63,600 Fixed costs Salaries 112.000 Depreciation 53,500 Property taxes Insurance 3,700 Janitorial 15,500 Instructions Using the information provided, prepare a flexible manufacturing budget report for the second quarter. 7,500 Second Quarter 2020 Actual Variable costs Indirect materials Indirect labour $103.860 67,750