The manufacturing overhead budget for Barkley Company contains the following items The budget was based on an
Question:
The manufacturing overhead budget for Barkley Company contains the following items
The budget was based on an estimated 2,000 units being produced. During the past month, 1,500 units were produced, and the following costs incurred.
Instructions
(a) Determine which items would be controllable by Bart Starr, the production manager.
(b) How much should have been spent during the month for the manufacture of the 1,500 units?
(c) Prepare a manufacturing overhead flexible budget report for Mr. Starr.
(d) Prepare a responsibility report. Include only the costs that would have been controllable by Mr. Starr. Assume that the supervision cost above includes Mr. Starr’s salary of $10,000, both at budget and actual. In an attached memo, describe clearly for Mr. Starr the areas in which his performance needs to be improved.
Step by Step Answer:
Accounting Principles
ISBN: 978-0470534793
10th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso