Chubbs Inc\'s manufacturing overhead budget for the first quarter of 2017 contai

Question

Chubbs Inc's manufacturing overhead budget for the first quarter of 2017 contained the following data. Variable Costs Fixed Costs $36,700 6,700 7,800 4,400 Supervisory salaries Indirect materials Indirect labor Utilities Maintenance $12,000 10,900 Depreciation 7,700 6,000 Maintenance Property taxes and insurance 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 (a) Prepare a manufacturing overhead flexible budget report for the first quarter. (List variable costs before fixed costs.)

Explanation / Answer

if Actual cost is more than budgeted cost, it will be Unfavorable. else Favorable

Chubbs Inc Manufacturing Overhead Flexible Budget Report For the Quarter Ended March 31, 2017 Budget Actual Difference F/U Variable costs Indirect material $ 12,000 $ 14,900 $           2,900 Unfavorable Indirect labour $ 10,900 $    9,500 $           1,400 Favorable Utilities $    7,700 $    9,500 $           1,800 Unfavorable Maintenance $    6,000 $    5,400 $              600 Favorable Total Variable costs $ 36,600 $ 39,300 $           2,700 Unfavorable Fixed Costs Supervisory salaries $ 36,700 $ 36,700 $                    - Neither Favorable nor Unfavorable Depreciation $    6,700 $    6,700 $                    - Neither Favorable nor Unfavorable Property tax and insurance $    7,800 $    8,600 $              800 Unfavorable Maintenance $    4,400 $    4,400 $                    - Neither Favorable nor Unfavorable Total Fixed costs $ 55,600 $ 56,400 $              800 Unfavorable Total Costs $ 92,200 $ 95,700 $           3,500 Unfavorable

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