Question

Exercise 10-10 (Video) Chubbs Inc.’s manufacturing overhead budget for the first quarter of 2020 contained the...

Exercise 10-10 (Video)

Chubbs Inc.’s manufacturing overhead budget for the first quarter of 2020 contained the following data.

Variable Costs

Fixed Costs
Indirect materials $12,000 Supervisory salaries $36,700
Indirect labor 10,900 Depreciation 6,700
Utilities 7,700 Property taxes and insurance 7,800
Maintenance 6,000 Maintenance 4,400


Actual variable costs were indirect materials $14,900, indirect labor $9,500, utilities $9,500, and maintenance $5,400. Actual fixed costs equaled budgeted costs except for property taxes and insurance, which were $8,600. 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.

(b) Prepare a responsibility report for the first quarter.

CHUBBS INC.
Manufacturing Overhead Responsibility Report
For the Quarter Ended March 31, 2020

Difference


Controllable Costs


Budget


Actual

Favorable
Unfavorable
Neither Favorable
nor Unfavorable

DepreciationIndirect MaterialsIndirect LaborMaintenanceSupervisory SalariesProperty Taxes and InsuranceUtilities

 $ $ $

FavorableUnfavorableNeither Favorable nor Unfavorable

UtilitiesMaintenanceIndirect MaterialsIndirect LaborSupervisory SalariesProperty Taxes and InsuranceDepreciation

FavorableUnfavorableNeither Favorable nor Unfavorable

DepreciationIndirect MaterialsIndirect LaborSupervisory SalariesMaintenanceProperty Taxes and InsuranceUtilities

FavorableUnfavorableNeither Favorable nor Unfavorable

DepreciationIndirect LaborIndirect MaterialsMaintenanceSupervisory SalariesUtilitiesProperty Taxes and Insurance

FavorableUnfavorableNeither Favorable nor Unfavorable

Indirect LaborMaintenanceSupervisory SalariesUtilitiesIndirect MaterialsProperty Taxes and InsuranceDepreciation

FavorableUnfavorableNeither Favorable nor Unfavorable
$ $ $

FavorableUnfavorableNeither Favorable nor Unfavorable
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