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Chubbs Inc.$$s manufacturing overhead budget for the first quarter of $2017$ contained the following data Chubbs Inc.$\text{'}$s manufacturing overhead budget for the first quarter of $2017$ contained the

following data

Variable Costs

Fixed Costs

Actual variable costs were indirect materials $$13,500,$ indirect labor $$9,500,$ utilities $$8,700,$ and

maintenance $$5,000.$ 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.

Instructions

a$)$ Prepare a manufacturing overhead flexible budget report for the first quarter.

b$)$ Prepare a responsibility report for the first quarter.

c$)$ Analyze your results in a and b$.$

Actual variable costs were indirect materials $$13,500,$ indirect labor $$9,500,$ utilities $$8,700,$ and maintenance $$5,000.$ 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.

Instructions

a$)$ Prepare a manufacturing overhead flexible budget report for the first quarter.

b$)$ Prepare a responsibility report for the first quarter.

c$)$ Analyze your results in a and b$.$

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