The Mixing Department manager of Malone Company 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 2022 are indirect labor $12,250, indirect materials $10,200, lubricants $1,650, maintenance $3,500, property taxes $1,100, rent $1,800, salaries $10,000, and utilities $6,400.

Instructions

a. Prepare a responsibility report for January 2022.
b. What would be the likely result of management’s analysis of the report?

Transcribed Image Text:

Indirect labor Indirect materials Lubricants Maintenance $12,000 7,700 1,675 3,500 Property taxes Rent Salaries Utilities $ 1,000 1,800 10,000 5,000