Lowell Company€™s manufacturing overhead budget for the first quarter of 2012 contained the following data.

Actual variable costs were: indirect materials $13,800, indirect labor $9,600, utilities $8,700 and maintenance $4,900. Actual fixed costs equaled budgeted costs except for property taxes and insurance, which were $8,200. 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 Indirect labor Utilities Maintenance $12,000 10,000 8,000 6,000 Supervisory salaries Depreciation Property taxes and insurance Maintenance $36,000 7,000 8,000 5,000