The mixing department manager of Crede Company is able to control all overhead costs except rent, property taxes, and salaries. Budgeted monthly overhead costs for the mixing department, in alphabetical order, are as follows:
Indirect labour..........................$11,500...................Property taxes..............$ 1,000
Indirect materials..........................7,500..............................Rent................1,800
Lubricants..................................1,700...........................Salaries..............10,000
Maintenance...............................3,500...........................Utilities...............5,000
Actual costs incurred for January 2012 are indirect labour $12,190; indirect materials $9,300; lubricants $1,649; maintenance $3,500; property taxes $1,100; rent $1,800; salaries $10,000; and utilities $6,500.
Instructions
(a) Prepare a responsibility report for January 2012.
(b) Determine the likely result of management's analysis of the report.