Variable Costs Fixed Costs Prepare a manufacturing overhead flexible budget repo

Question

Variable Costs

Fixed Costs

Prepare a manufacturing overhead flexible budget report for the first quarter. (List variable costs before fixed costs.)

Prepare a responsibility report for the first quarter.

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

Variable Costs

Fixed Costs

Indirect materials $11,563 Supervisory salaries $35,165 Indirect labor 10,868 Depreciation 7,341 Utilities 7,913 Property taxes and insurance 7,820 Maintenance 5,985 Maintenance 4,285
Actual variable costs were indirect materials $14,970, indirect labor $9,443, utilities $9,875, and maintenance $4,570. Actual fixed costs equaled budgeted costs except for property taxes and insurance, which were $8,215. 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

Flexible Budget Particulars Amount $ Variable cost Indirect materials      11,563 Indirect labor      10,868 Utilities         7,913 Maintenance         5,985      36,329 Fixed cost Supervisory salaries      35,165 Depreciation         7,341 Property taxes and insurance         7,820 Maintenance         4,285      54,611 Total cost      90,940

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