Explanation:
a. Manufacturing overhead Flexible budget report
Budget Actual Favorable (Unfavorable)
Variable cost
Indirect material $11,100 $14,900 $3,800 U
Indirect labor $11,000 $9,600 $1,400 F
Utilities $7,700 $9,100 $1,400 U
Maintenance $5,500 $4,800 $700 F
Total Variable cost $35,300 $38,400 $3,100 U
Fixed expenses
Supervisory Salary $36,700 $36,700 0
Depreciation $6,100 $6,100 0
Property, taxes $7,400 $8,500 $1,100 U
Maintenance $4,900 $4,900 0 U
Total fixed expense $55,100 $56,200 $1,100 U
Total controllable
cost $90,400 $94,600 $4,200 U
b. Manufacturing overhead Responsibility report
Controllable cost Budget Actual Favorable (Unfavorable)
Indirect material $11,100 $14,900 $3,800 U
Indirect labor $11,000 $9,600 $1,400 F
Utilities $7,700 $9,100 $1,400 U
Maintenance $10,400 $9,700 $700 F
Supervisory salaries$36,700 $36,700 0
Total $76,900 $80,000 $3,100 U
