Question

The Mixing Department manager of Malone Company is able to control all overhead costs except rent,...

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
Business   Accounting   
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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
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