Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

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

ID: 2473761 • Letter: E

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)

LINK TO TEXT

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)

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 $11,563 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. Your answer is incorrect. Try again. Prepare a manufacturing overhead flexible budget report for the first quarter. (List variable costs before 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)

Indirect MaterialsMaintenanceProperty Taxes and InsuranceTotal Variable CostsUtilitiesFixed CostsIndirect LaborSupervisory SalariesDepreciationTotal CostsTotal Fixed CostsVariable Costs

    Fixed Costs    Total Fixed Costs    Depreciation    Maintenance    Total Variable Costs    Indirect Labor    Indirect Materials    Property Taxes and Insurance    Supervisory Salaries    Total Costs    Utilities    Variable Costs    

$

$

$

FUN

    Total Fixed Costs    Supervisory Salaries    Maintenance    Property Taxes and Insurance    Indirect Materials    Total Costs    Indirect Labor    Total Variable Costs    Utilities    Variable Costs    Depreciation    Fixed Costs    

FUN

    Utilities    Indirect Labor    Total Variable Costs    Total Fixed Costs    Variable Costs    Fixed Costs    Depreciation    Maintenance    Indirect Materials    Total Costs    Property Taxes and Insurance    Supervisory Salaries    

FUN

    Indirect Materials    Variable Costs    Utilities    Supervisory Salaries    Depreciation    Total Costs    Indirect Labor    Property Taxes and Insurance    Maintenance    Total Variable Costs    Total Fixed Costs    Fixed Costs    

FUN

Indirect LaborProperty Taxes and InsuranceIndirect MaterialsUtilitiesSupervisory SalariesDepreciationFixed CostsVariable CostsMaintenanceTotal Variable CostsTotal CostsTotal Fixed Costs

FUN

Property Taxes and InsuranceDepreciationFixed CostsSupervisory SalariesTotal CostsTotal Fixed CostsMaintenanceIndirect MaterialsIndirect LaborTotal Variable CostsUtilitiesVariable Costs

    Supervisory Salaries    Property Taxes and Insurance    Maintenance    Total Costs    Total Variable Costs    Total Fixed Costs    Utilities    Variable Costs    Depreciation    Fixed Costs    Indirect Labor    Indirect Materials    

FUN

    Indirect Labor    Indirect Materials    Property Taxes and Insurance    Maintenance    Depreciation    Total Fixed Costs    Variable Costs    Fixed Costs    Supervisory Salaries    Total Variable Costs    Total Costs    Utilities    

FUN

    Maintenance    Depreciation    Fixed Costs    Indirect Labor    Supervisory Salaries    Total Costs    Total Fixed Costs    Property Taxes and Insurance    Utilities    Total Variable Costs    Variable Costs    Indirect Materials    

FUN

    Total Variable Costs    Variable Costs    Total Fixed Costs    Supervisory Salaries    Indirect Materials    Maintenance    Indirect Labor    Property Taxes and Insurance    Total Costs    Fixed Costs    Utilities    Depreciation    

FUN

Total Fixed CostsTotal Variable CostsUtilitiesIndirect LaborIndirect MaterialsDepreciationVariable CostsFixed CostsMaintenanceProperty Taxes and InsuranceSupervisory SalariesTotal Costs

FUN

Total Variable CostsTotal Fixed CostsSupervisory SalariesDepreciationUtilitiesVariable CostsFixed CostsIndirect MaterialsIndirect LaborMaintenanceProperty Taxes and InsuranceTotal Costs

$

$

$

FUN

LINK TO TEXT

Your answer is incorrect. Try again. Prepare a responsibility report for the first quarter.

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)

    Supervisory Salaries    Indirect Materials    Indirect Labor    Property Taxes and Insurance    Maintenance    Utilities    Depreciation    

$

$

$

FUN

    Maintenance    Property Taxes and Insurance    Supervisory Salaries    Depreciation    Indirect Materials    Utilities    Indirect Labor    

FUN

    Utilities    Property Taxes and Insurance    Indirect Materials    Depreciation    Supervisory Salaries    Indirect Labor    Maintenance    

FUN

    Depreciation    Indirect Materials    Utilities    Indirect Labor    Maintenance    Supervisory Salaries    Property Taxes and Insurance    

FUN

    Indirect Labor    Utilities    Maintenance    Property Taxes and Insurance    Depreciation    Supervisory Salaries    Indirect Materials    

FUN

$

$

$

FUN

Explanation / Answer

LOWELL COMPANY Manufacturing Overhead Flexible Budget Report For the Quarter Ended March 31, 2014 Budget Actual Variance Variable Costs: Indirect materials 11563 14970 3407 U Indirect labour 10868 9443 -1425 F Utilities 7913 9875 1962 U Maintenance 5985 4570 -1415 F Total variable Costs 36329 38858 2529 U Fixed Costs: Supervisory salaries 35165 35165 0 N Depreciation 7341 7341 0 N Property taxes and Insurance 7820 8215 395 U maintenance 4285 4285 0 N Total Fixed Costs 54611 55006 395 U LOWELL COMPANY Manufacturing Overhead Flexible Budget Report For the Quarter Ended March 31, 2014 Controllable Costs Budget Actual Variance Indirect materials 11563 14970 3407 U Indirect labour 10868 9443 -1425 F Utilities 7913 9875 1962 U Maintenance 5985 4570 -1415 F Fixed Costs: Supervisory salaries 35165 35165 0 N maintenance 4285 4285 0 N