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

Actual variable costs were indirect materials $14,600, indirect labor $9,400, utilities $9,200, and maintenance $4,800. Actual fixed costs equaled budgeted costs except for property taxes and insurance, which were $8,200. 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.)

CHUBBS INC.
Manufacturing Overhead Flexible Budget Report
For the Quarter Ended March 31, 2017

Difference

Budget

Actual

Favorable
Unfavorable
Neither Favorable
nor Unfavorable

(b) Prepare a responsibility report for the first quarter.

CHUBBS INC.
Manufacturing Overhead Responsibility Report
For the Quarter Ended March 31, 2017

Difference

Controllable Costs

Budget

Actual

Favorable
Unfavorable
Neither Favorable
nor Unfavorable

Open Show Work

Variable Costs

Fixed Costs

Indirect materials $11,300 Supervisory salaries $37,000 Indirect labor 10,000 Depreciation 6,100 Utilities 7,200 Property taxes and insurance 7,300 Maintenance 5,500 Maintenance 4,200

Explanation / Answer

a) CHUBBS INC. Manufacturing Overhead Flexible Budget Report For the Quarter Ended March 31, 2017 Budget Actual Difference Favorable Unfavorable Neither Favorable nor Unfavorable Variable Costs: Indirect materials 11300 14600 3300 Unfavorable Indirect labor 10000 9400 -600 Favorable Utilities 7200 9200 2000 Unfavorable Maintenance-Variable 5500 4800 -700 Favorable Total variable costs 34000 38000 4000 Unfavorable Fixed costs: Maintenance - Fixed 4200 4200 0 Neither Favorable nor Unfavorable Supervisory salaries 37000 37000 0 Neither Favorable nor Unfavorable Depreciation 6100 6100 0 Neither Favorable nor Unfavorable Property taxes and insurance 7300 8200 900 Unfavorable Total fixed costs 54600 55500 900 Unfavorable Total costs 88600 93500 4900 Unfavorable b) CHUBBS INC. Manufacturing Overhead Responsibility Report For the Quarter Ended March 31, 2017 Controllable costs Budget Actual Difference Favorable Unfavorable Neither Favorable nor Unfavorable Variable Costs: Indirect materials 11300 14600 3300 Unfavorable Indirect labor 10000 9400 -600 Favorable Utilities 7200 9200 2000 Unfavorable Maintenance-Variable 5500 4800 -700 Favorable Total variable costs 34000 38000 4000 Unfavorable Fixed costs: Maintenance - Fixed 4200 4200 0 Neither Favorable nor Unfavorable Supervisory salaries 37000 37000 0 Neither Favorable nor Unfavorable Total fixed costs 41200 41200 0 Unfavorable Total costs 75200 79200 4000 Unfavorable

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

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