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. |
|||||||
|
Difference |
|||||||
|
|
|
|
Favorable |
||||
|
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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