The Mixing Department manager of Xuzhou Ltd. 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 2020 are indirect labor ¥122,500; indirect materials ¥102,000; lubricants ¥16,500; maintenance ¥35,000; property taxes ¥11,000; rent ¥18,000; salaries ¥100,000; and utilities ¥64,000.

Instructions

a. Prepare a responsibility report for January 2020.

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

Transcribed Image Text:

Indirect labor Indirect materials Lubricants Maintenance Property taxes Rent Salaries Utilities ¥120,000 ¥ 10,000 77,000 18,000 16,750 100,000 35,000 50,000