Exercise 22-9 Variable Costs Fixed Costs LOWELL COMPANY Manufacturing Overhead F

Question

Exercise 22-9

Variable Costs

Fixed Costs

LOWELL COMPANY
Manufacturing Overhead Flexible Budget Report
For the Quarter Ended March 31, 2014

Difference

Budget

Actual

Favorable (F)
Unfavorable (U)
Neither Favorable
nor Unfavorable (N)

LOWELL COMPANY
Manufacturing Overhead Responsibility Report
For the Quarter Ended March 31, 2014

Difference

Controllable Costs

Budget

Actual

Favorable (F)
Unfavorable (U)
Neither Favorable
nor Unfavorable (N)

Open Show Work

Exercise 22-9

Lowell Company’s manufacturing overhead budget for the first quarter of 2014 contained the following data.

Variable Costs

Fixed Costs

Indirect materials $11,430 Supervisory salaries $36,482 Indirect labor 10,866 Depreciation 7,031 Utilities 7,433 Property taxes and insurance 7,407 Maintenance 5,953 Maintenance 4,928
Actual variable costs were indirect materials $14,545, indirect labor $9,554, utilities $9,416, and maintenance $4,648. Actual fixed costs equaled budgeted costs except for property taxes and insurance, which were $8,510. 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.

Explanation / Answer

3.      If cuts are likely to continue, administrators should be particularly vigilant to monitor the quality and effectiveness of programs and to closely watch how well programs use financial resources

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

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