Data concerning manufacturing overhead for Wilson Audio are presented below. The packaging department is a...
80.2K
Verified Solution
Link Copied!
Question
Accounting
Data concerning manufacturing overhead for Wilson Audio are presented below. The packaging department is a cost centre.
An analysis of the overhead costs reveals that all variable costs are controllable by the manager of the packaging department, and, out of fixed costs, only 40% of supervisory costs are controllable at the department level. The flexible budget values and the cost and activity for the month of August while operating at 1,600 direct labour hours follows:
Flexible Budget Actual August Activity
Variable costs:
Indirect materials $2.00 $ 3,000
Indirect labour 3.00 4,500
Factory supplies 0.50 750
Fixed (including controllable and non-controllable) costs:
Depreciation $14,000 15,000
Supervision 20,000 19,000
Property taxes 14,000 12,000
Total costs $56,800 $54,250
Instructions
a) Prepare the responsibility reports for the packaging department for August. 12 marks
b) Comment on the manager's performance in controlling costs during the month. 3 marks
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.