owell Company\'s manufacturing overhead budget for the first quarter of 2014 con

Question

owell Company's manufacturing overhead budget for the first quarter of 2014 contained the following data. Actual variable costs were indirect materials $14,539, indirect labor $9,481, utilities $9,197, and maintenance $4,670. Actual fixed costs equaled budgeted costs except for property taxes and insurance, which were fc9,048. The actual activity level equaled the budgeted level. Ml costs are considered controllable by the production department manager except for depreciation, and property taxes and insurance.

Explanation / Answer

LOWELL COMPANY MANUFACTURING OVERHEAD FLEXIBLE BUDGET REPORT For the Quarter Ended March 31 2014 Particulars Budget Actual Difference F/U/N Variable Costs Indirect Materials $11,801 $14,539 -$2,738 U Indirect Labour $10,365 $9,481 $884 F Utilities $7,242 $9,197 -$1,955 U Maintenance $5,847 $4,670 $1,177 F Total Variable Manufacturing Overhead (A) $35,255 $37,887 -$2,632 U Fixed Costs Supervisory Salaries $36,808 $36,808 $0 N Depreciation $7,688 $7,688 $0 N Property Taxes and Insurance $7,407 $9,048 -$1,641 U Maintenance $5,570 $5,570 $0 N Total Fixed Manufacturing Overhead (B) $57,473 $59,114 -$1,641 U Total Manufacturing Overhead (A+B) $92,728 $97,001 -$4,273 U

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