60.1K

Verified Solution

Link Copied!

The manufacturing overhead budget for Fleming Company contains the following items.

Variable costs						Fixed costs
	Indirect materials			$23,320			Supervision			$18,000
	Indirect labor			12,720			Inspection costs			1,100
	Maintenance expense			10,600			Insurance expense			2,100
	Manufacturing supplies			6,360			Depreciation			15,900
		Total variable		$53,000				Total fixed		$37,100

The budget was based on an estimated 2,120 units being produced. During the past month, 1,590 units were produced, and the following costs incurred.

Variable costs						Fixed costs
	Indirect materials			$23,900			Supervision			$19,500
	Indirect labor			14,300			Inspection costs			1,300
	Maintenance expense			8,700			Insurance expense			2,300
	Manufacturing supplies			5,300			Depreciation			15,600
		Total variable		$52,200				Total fixed		$38,700

Prepare a responsibility report. Include only the costs that would have been controllable by Mr. Bedner. Assume that the supervision cost above includes Mr. Bedners salary of $11,000, both at budget and actual.

FLEMING COMPANY Production Department Manufacturing Overhead Responsibility Report For the Month Ended
						Difference
Controllable Cost		Budget		Actual		Favorable Unfavorable Neither favorable nor unfavorable
Indirect materialsFixed CostsManufacturing suppliesInspection costsTotal Fixed CostsMaintenance expenseSupervisionIndirect laborVariable CostsInsurance expenseTotal Variable CostsDepreciation		$		$		$	FavorableUnfavorableNeither favorable nor unfavorable
Inspection costsManufacturing suppliesDepreciationIndirect laborVariable CostsInsurance expenseMaintenance expenseFixed CostsTotal Variable CostsSupervisionIndirect materialsTotal Fixed Costs							FavorableUnfavorableNeither favorable nor unfavorable
Insurance expenseIndirect materialsMaintenance expenseManufacturing suppliesInspection costsIndirect laborFixed CostsTotal Fixed CostsSupervisionDepreciationTotal Variable CostsVariable Costs							FavorableUnfavorableNeither favorable nor unfavorable
Inspection costsDepreciationIndirect materialsVariable CostsTotal Variable CostsMaintenance expenseIndirect laborInsurance expenseFixed CostsTotal Fixed CostsManufacturing suppliesSupervision							FavorableUnfavorableNeither favorable nor unfavorable
Total Variable CostsInspection costsVariable CostsMaintenance expenseIndirect materialsInsurance expenseSupervisionIndirect laborFixed CostsManufacturing suppliesTotal Fixed CostsDepreciation							FavorableUnfavorableNeither favorable nor unfavorable
Indirect materialsInsurance expenseDepreciationSupervisionMaintenance expenseIndirect laborInspection costsTotal Variable CostsTotal Fixed CostsManufacturing suppliesFixed CostsVariable Costs							FavorableUnfavorableNeither favorable nor unfavorable
Total		$		$		$	FavorableUnfavorableNeither favorable nor unfavorable

Answer & Explanation Solved by verified expert

See Answer