Question

The Mixing Department manager of Malone 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		$11,850		Property taxes		$930
Indirect materials		7,400		Rent		1,700
Lubricants		1,690		Salaries		9,600
Maintenance		3,700		Utilities		5,900

Actual costs incurred for January 2020 are indirect labor $12,400; indirect materials $11,350; lubricants $1,600; maintenance $3,700; property taxes $1,100; rent $1,700; salaries $9,600; and utilities $6,500.

Prepare a responsibility report for January 2020.

MALONE COMPANY Mixing Department Responsibility Report For the Month Ended January 31, 2020
						Difference
Controllable Costs		Budget		Actual		Favorable F Unfavorable U Neither Favorable nor Unfavorable N
Indirect LaborRentUtilitiesLubricantsMaintenanceProperty TaxesIndirect MaterialsSalaries		$		$		$	Neither Favorable nor UnfavorableUnfavorableFavorable
Indirect MaterialsProperty TaxesMaintenanceIndirect LaborSalariesUtilitiesLubricantsRent							FavorableNeither Favorable nor UnfavorableUnfavorable
Indirect MaterialsRentIndirect LaborMaintenanceSalariesUtilitiesProperty TaxesLubricants							FavorableUnfavorableNeither Favorable nor Unfavorable
MaintenanceSalariesRentLubricantsIndirect MaterialsIndirect LaborProperty TaxesUtilities							FavorableUnfavorableNeither Favorable nor Unfavorable
MaintenanceSalariesUtilitiesLubricantsProperty TaxesRentIndirect LaborIndirect Materials							Neither Favorable nor UnfavorableFavorableUnfavorable
		$		$		$	FavorableUnfavorableNeither Favorable nor Unfavorable

Answer 1

Answer-

MALONE COMPANY
MIXING DEPARTMENT
RESPONSIBILITY REPORT
For the Month Ended January 31,2020
Controllable Costs	Budget	Actual	Variances	Remark
	$	$	$
Indirect labor	11850	12400	-550	Unfavorable
Indirect materials	7400	11350	-3950	Unfavorable
Lubricants	1690	1600	90	Favorable
Maintenance	3700	3700	0	None
Utilities	5900	6500	-600	Unfavorable
Total controllable costs $	30540	35550	-5010	Unfavorable