The Mixing Department manager of Malone Company is able to control all overhead costs except rent, property taxes, and salaries. Budgeted monthly overhead costs for the Mixing Department, in alphabetical order, are:

Actual costs incurred for January 2017 are indirect labor $12,250; indirect materials $10,200; lubricants $1,650; maintenance $3,500; property taxes $1,100; rent $1,800; salaries $10,000; and utilities $6,400.

Instructions

(a) Prepare a responsibility report for January 2017.

(b) What would be the likely result of management’s analysis of the report?

Transcribed Image Text:

Indirect labor $12,000 Property taxes $ 1,000 Indirect materials 7,700 1,675 3,500 1,800 10,000 5,000 Rent Lubricants Salaries Maintenance Utilities