WCP24 Waterways Corporation is continuing its budget preparations. Waterways had the following static budget

and overhead costs for March 2014.

WATERWAYS CORPORATION WATERWAYS CORPORATION

Manufacturing Overhead Budget Manufacturing Overhead Costs (Actual)

(Static) For the Month of March 2014 For the Month of March 2014

Budgeted production in units 117,500 Production in units 118,500

Budgeted costs Costs

Indirect materials $ 5,875 Indirect materials $ 5,910

Indirect labor 14,100 Indirect labor 14,195

Utilities 11,750 Utilities 11,880

Maintenance 8,225 Maintenance 8,275

Salaries 42,000 Salaries 42,000

Depreciation 16,800 Depreciation 16,800

Property taxes 3,000 Property taxes 3,000

Insurance 1,200 Insurance 1,200

Janitorial 1,500 Janitorial 1,500

Total budgeted costs $104,450 Total costs $104,760

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

Instructions

(a) show a flexible overhead budget based on the following amounts produced.

(1) 115,500 units

(2) 116,500 units

(3) 117,500 units

(4) 118,500 units

(5) 119,500 unints

B) show a flexible budget report showing the differences (favorable and unfavorable) in manufacturing

overhead costs for the month of March.

c) show

a responsibility report for the manufacturing overhead for march, assuming only variable costs are controllable.