Lowell Company’s manufacturing overhead budget for the first quarter of 2014 con

Question

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

Exercise 22-9 (part level submission) Lowell Company's manufacturing overhead budget for the first quarter of 2014 contained the following data. Variable Costs Fixed Costs Indirect materials Indirect labor Utilities Maintenance $35,536 6,413 7,104 4,084 $11,060 Supervisory salaries 10,616 Depreciation 7,269 5,772 Maintenance Property taxes and insurance Actual variable costs were indirect materials $15,097, indirect labor $9,283, utilities $9,859, and maintenance $4,608. Actual fixed costs equaled budgeted costs except for property taxes and insurance, which were $9,072. The actual activity level equaled the budgeted level. Alil ots are considered controilable by All costs are considered controllable by the production department manager except for depreciation, and property taxes and insurance.

Explanation / Answer

Budget Actual Difference variable cost Indirect material 11060 15097 4037 U Indirect labor 10616 9283 -1333 F Utilities 7269 9859 2590 U Maintenance 5772 4608 -1164 F Total variable cost 34717 38847 4130 U Fixed cost salaries 35536 35536 0 depreciation 6413 6413 0 Property Taxes 7104 9072 1968 U Maintenance 4084 4084 0 Total fixed cost 53137 55105 1968 U Total cost 87854 93952 6098 U

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