Person A earns $100,000 per year, while person B earns $45,000 per year.
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Responsibility report for the financial period of the overhead costs incurred will have a negative shortfall and a difference of $4125 for the controllable costs.
<h3>What are overhead costs?</h3>Overhead costs are such costs which are continuously in an organization while operating in the regular course of business. The overhead costs are estimated before they are actually incurred for efficiency of cost allocation.
The responsibility report for the overhead costs incurred by Malone Company for the given period are attached with an image for better reference.
Hence, it can be stated that the controllable costs' responsibility report shows as overhead costs of negative difference of $4125.
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