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The Mixing Department manager of Crede Company is able to control all overhead c

ID: 2385939 • Letter: T

Question

The Mixing Department manager of Crede 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 $14,160 Property taxes $1,180
Indirect materials 8,850 Rent 2,124
Lubricants 2,006 Salaries 11,800
Maintenance 4,130 Utilities 5,900
Actual costs incurred for January 2010 are indirect labor $14,396; indirect materials $12,036; lubricants $1,947; maintenance $4,130; property taxes $1,298; rent $2,124; salaries $11,800; and utilities $7,670.
Complete the responsibility report for January 2010. (List multiple entries from largest to smallest amounts, e.g. 10, 5, 2. If answer is zero, please enter 0, do not leave any fields blank.)
CREDE COMPANY
Mixing Department
Responsibility Report
For the Month Ended January 31, 2010
Difference
Favorable F
Controllable Cost Budget Actual Unfavorable U
$
$
$

















$
$
$

Explanation / Answer

                                  CREDE COMPANY
                                Mixing Department
                              Responsibility Report
                  For the Month Ended January 31, 2010

______________________________________________
                                                                             Favorabl
e
Controllable costs     Budget    Actual       Diff.      Unfavorable                
Indirect Labor           $14,160    $14,396     -$236     Unfavorable
Indirect Materials       $8,850    $12,036 -$3,186     Unfavorable
Lubricants                 $2,006      $1,947       $59      Favorable
Maintenance              $4,130     $4,130           0
Utilities                     $5,900    $7,670   -$1,770     Unfavorable
                             $35,046 $40,179  -$5,133    Unfavorable

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