Question

Sunland Inc.'s manufacturing overhead budget for the first quarter of 2020 contained the following data. Variable Costs Fixed Costs Indirect materials $11,100 Supervisory salaries Indirect labor 10,700 Depreciation Utilities 7,800 Property taxes and insurance Maintenance 5,700 Maintenance $35,400 7,500 7,300 4,000 Actual variable costs were indirect materials $15, 100, indirect labor $9,500, utilities $9.600, and maintenance $5,200. Actual fixed costs equaled budgeted costs except for property taxes and insurance, which were $8,300. 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. (a) Prepare a manufacturing overhead flexible budget report for the first quarter. (List variable costs before fixed costs.)

Answer 1

Manufacturing Overhead Flexible Budget Budget Actual Variance Variable Cost :- Indirect Materials $11.100 $15.100 $4.000 U Indirect Labor $10.7001 $9,500 $1,200 F Utilities $7.800 $9.600 $1,800 U Maintenance $5.700 $5,200 $500 F Total Variable Cost $35,300 $39,400 $4,100 | Fixed Cost :- Supervisory Salaries $35,400 $35.4001 Depreciation $7,500 $7.500 SON Property taxes and insurance $7.3001 $8.300 $1,000 U Maintenance $4,000 $4,000 SON Total Fixed Cost (B) $54,200 $55,200 $1,000 U Total Cost (A+B) $89.500 $94.600 $5.100 U SONI Variance Manufacturing overhead responsibility report Budget Actual Controllable Cost :- Indirect Materials $11,100 $15,100 Indirect Labor $10.700 $9,500 Utilities $7.800 $9.600 Maintenance (Variable + Fixed) $9,700 $9,200 Supervisory salaries $35.400 $35.400 Total cost $74.700 $78,800 $4.000 U $1,200 F $1.800 U $500 F SON $4.100 U