Reference no: EM13574519

Data concerning manufacturing overhead for Analina Industries are presented below. The Mixing Department is a cost center. An analysis of the overhead costs reveals that all variable costs are controllable by the manager of the Mixing Department and that 50% of supervisory costs are controllable at the department level.The flexible budget formula and the cost and activity for the months of June and July are as follows:

                                              Flexible Budget Per

                                               Direct Labor Hour               Actual Costs and Activity

                                                                                            June                 July

Direct labor hours                                                                6,000                7,000
Overhead Costs
Variable
Indirect Materials                          $3.50                                $20,500          $25,100
Indirect Labor                              6.00                                   39,500             40,700
Factory Supplies                            1.00                                  7,600               8,200
Fixed
Deprechiation                                $20,000                            15,000             15,000
Supervision                                     25,000                             24,000             26,000
Property Taxes                                 10,000                            12,000            12,000
Total Costs                                                                              118,600          127,000

Instructions

(a)	Prepare the responsibility reports for the Mixing Department for each month.
(b)	Comment on the manager's performance in controlling costs during the two-month period.