Chubbs Inc.€™s manufacturing overhead budget for the first quarter of 2017 contained the following data.

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 firstquarter.

Transcribed Image Text:

Variable Costs Fixed Costs Indirect materials Indirect labor Utilities Maintenance Supervisory salaries $36,000 7,000 8,000 5,000 $12,000 10,000 Depreciation 8,000 Property taxes and insurance 6,000 Maintenance