Exercise 22-14 The Mixing Department manager of Malone Company is able to contro

Question

Exercise 22-14

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:

Actual costs incurred for January 2017 are indirect labor $12,200; indirect materials $12,160; lubricants $1,500; maintenance $3,520; property taxes $2,140; rent $2,330; salaries $14,200; and utilities $6,800.

Prepare a responsibility report for January 2017.

MALONE COMPANY
Mixing Department
Responsibility Report
For the Month Ended January 31, 2017

Difference

Controllable Costs

Budget

Actual

Favorable F
Unfavorable U
Neither Favorable
nor Unfavorable N

Indirect labor $12,090 Property taxes $2,900 Indirect materials 9,170 Rent 2,330 Lubricants 3,350 Salaries 14,200 Maintenance 3,520 Utilities 5,500

Explanation / Answer

Please find below answer of your question. If this helped, please hit LIKE button. If need any explanation, put it in comment.

rent, property taxes, and salaries are ignored as these are non-controllable cost.

Controllable Cost Budget Actual Difference F/U Indirect Labor 12090 12200 110 Unfavorable Indirect Material 9170 12160 2990 Unfavorable Lubricants 3350 1500 1850 Favorable Maintenance 3520 3520 0 N Utilities 5500 6800 1300 Unfavorable Total 33630 36180 2550 Unfavorable

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.