Lowell Company€™s manufacturing overhead budget for the first quarter of 2014 contained the following data.

Actual variable costs were indirect materials $13,900, 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 $8,400. 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.

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