Lowell Company's manufacturing overhead budget for the first quarter of 2012 contained the following data.
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Variable Costs
|
|
Fixed Costs
|
| Indirect materials |
|
$11,633 |
|
Supervisory salaries |
|
$35,906 |
| Indirect labor |
|
10,472 |
|
Depreciation |
|
6,179 |
| Utilities |
|
7,595 |
|
Property taxes and insurance |
|
7,190 |
| Maintenance |
|
5,507 |
|
Maintenance |
|
5,751 |
Actual variable costs were: indirect materials $14,802, indirect labor $9,424, utilities $9,718, and maintenance $5,050. Actual fixed costs equaled budgeted costs except for property taxes and insurance, which were $8,513. The actual activity level equaled the budgeted level.
All costs are considered controllable by the production department manager except for depreciation, and property taxes and insurance.
(a) Prepare a manufacturing overhead flexible budget report for the first quarter.
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LOWELL COMPANY
Manufacturing Overhead Flexible Budget Report
For the Quarter Ended March 31, 2012
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|
|
|
Difference
|
|
Budget
|
Actual
|
Favorable F
Unfavorable U
Neither Favorable
nor Unfavorable N
|
| Variable Costs |
|
|
|
|
 Total CostsUtilitiesTotal Fixed CostsIndirect MaterialsVariable CostsTotal Variable CostsMaintenanceDepreciationFixed CostsIndirect LaborProperty Taxes and InsuranceSupervisory Salaries |
$
|
$
|
$
|
FUN
|
| DepreciationTotal CostsTotal Variable CostsIndirect MaterialsFixed CostsMaintenanceSupervisory SalariesTotal Fixed CostsProperty Taxes and InsuranceUtilitiesVariable CostsIndirect Labor |
|
|
|
FUN
|
| Indirect MaterialsDepreciationTotal Fixed CostsUtilitiesTotal CostsTotal Variable CostsFixed CostsVariable CostsIndirect LaborSupervisory SalariesMaintenanceProperty Taxes and Insurance |
|
|
|
FUN
|
| Property Taxes and InsuranceVariable CostsDepreciationMaintenanceTotal Variable CostsFixed CostsUtilitiesSupervisory SalariesIndirect LaborIndirect MaterialsTotal CostsTotal Fixed Costs |
|
|
|
FUN
|
| Supervisory SalariesTotal Variable CostsTotal CostsTotal Fixed CostsUtilitiesVariable CostsDepreciationFixed CostsProperty Taxes and InsuranceIndirect LaborIndirect MaterialsMaintenance |
|
|
|
FUN
|
| Fixed Costs |
|
|
|
|
| Supervisory SalariesFixed CostsUtilitiesMaintenanceTotal CostsTotal Fixed CostsTotal Variable CostsIndirect MaterialsVariable CostsDepreciationIndirect LaborProperty Taxes and Insurance |
|
|
|
FUN
|
| DepreciationSupervisory SalariesTotal Fixed CostsProperty Taxes and InsuranceIndirect MaterialsIndirect LaborVariable CostsTotal CostsTotal Variable CostsUtilitiesMaintenanceFixed Costs |
|
|
|
FUN
|
| Total Fixed CostsUtilitiesIndirect LaborVariable CostsDepreciationFixed CostsProperty Taxes and InsuranceTotal Variable CostsIndirect MaterialsMaintenanceSupervisory SalariesTotal Costs |
|
|
|
FUN
|
| Indirect MaterialsTotal Fixed CostsProperty Taxes and InsuranceSupervisory SalariesUtilitiesTotal CostsTotal Variable CostsVariable CostsDepreciationFixed CostsIndirect LaborMaintenance |
|
|
|
FUN
|
| Indirect MaterialsFixed CostsTotal CostsTotal Fixed CostsTotal Variable CostsIndirect LaborVariable CostsUtilitiesDepreciationMaintenanceProperty Taxes and InsuranceSupervisory Salaries |
|
|
|
FUN
|
| DepreciationFixed CostsVariable CostsMaintenanceSupervisory SalariesTotal Variable CostsTotal Fixed CostsUtilitiesIndirect LaborIndirect MaterialsProperty Taxes and InsuranceTotal Costs |
$
|
$
|
$
|
FUN
|
(b) Prepare a responsibility report for the first quarter.
|
LOWELL COMPANY
Manufacturing Overhead Responsibility Report
For the Quarter Ended March 31, 2012
|
|
|
|
Difference
|
|
Controllable Costs
|
Budget
|
Actual
|
Favorable F
Unfavorable U
Neither Favorable
nor Unfavorable N
|
|
Supervisory SalariesProperty Taxes and InsuranceUtilitiesDepreciationIndirect MaterialsIndirect LaborMaintenance
|
$ |
$ |
$ |
FUN
|
|
Indirect MaterialsProperty Taxes and InsuranceSupervisory SalariesUtilitiesIndirect LaborMaintenanceDepreciation
|
|
|
|
FUN
|
|
UtilitiesMaintenanceDepreciationProperty Taxes and InsuranceIndirect MaterialsSupervisory SalariesIndirect Labor
|
|
|
|
FUN
|
|
DepreciationIndirect MaterialsMaintenanceIndirect LaborProperty Taxes and InsuranceSupervisory SalariesUtilities
|
|
|
|
FUN
|
|
UtilitiesMaintenanceIndirect LaborIndirect MaterialsSupervisory SalariesDepreciationProperty Taxes and Insurance
|
|
|
|
FUN
|
|
$
|
$
|
$
|
FUN
|