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Question - The Mixing Department manager of Ayayai 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:
Indirect labor $12,000
Property taxes $1,000
Indirect materials 7,500
Rent 1,700
Lubricants 1,600
Salaries 10,000
Maintenance 3,400
Utilities 5,000
Actual costs incurred for January 2017 are indirect labor $12,200; indirect materials $10,000; lubricants $1,500; maintenance $3,400; property taxes $1,100; rent $1,700; salaries $10,000; and utilities $6,400.
Required - Prepare a responsibility report for January 2017.
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