Actual variable costs were indirect materials 14802

Reference no: EM13568968

Lowell Company's manufacturing overhead budget for the first quarter of 2012 contained the following data.

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.

LOWELL COMPANY Manufacturing Overhead Flexible Budget Report For the Quarter Ended March 31, 2012
			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

Reference no: EM13568968

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