Data concerning manufacturing overhead for Wilson Industries are presented below.

The Mixing Department is a cost center.

An analysis of the overhead costs reveals that all variable costs are controllable by the

manager of the Mixing Department and that $50\%$ of supervisory costs are controllable at

the department level.

The flexible budget formula and thre cost and activity for the months of July and August

are as follows:

Flexible Budget Per Actual

Direct Labor Hour July August

Direct labor hours $6,0007,000$

Overhead costs

Variable

Indirect materials $3\mathrm{.}5020,50025,100$

Indirect labor $6\mathrm{.}0039,50040,700$

Factory supplies $1\mathrm{.}007,6008,200$

Fixed

Depreciation $20,00015,00015,000$

Supervision $25,00023,00026,000$

Property taxes $10,00012,00012,000$

Total costs $117,600127,000$

INSTRUCTIONS

$($a$)$ Prepare the responsibility reports for the Mixing Department for each month

$($b$)$ Comment on the manager's performance in controlling costs during the two months