Exercise 194

Strickland Corp.'s manufacturing overhead budget for the first quarter of 2016 contained the following data:

Variable Costs

Indirect materials$40,000Indirect labor24,000Utilities20,000Maintenance12,000Fixed Costs

Supervisor's salary$80,000Depreciation16,000Property taxes8,000Actual variable costs for the first quarter were:

Indirect materials$37,200Indirect labor26,400Utilities21,000Maintenance10,600

Actual fixed costs were as expected except for property taxes which were $9,000. All costs are considered controllable by the department manager except for the supervisor's salary.

manufacturing overhead responsibility performance report for the first quarter.

STRICKLAND CORP.

Manufacturing Overhead Cost Responsibility Report

For the Quarter Ended March 31, 2016

DifferenceControllable CostsBudget

Actual

Favorable (F)

Unfavorable (U)

Not Applicable (NA)

MaintenanceDepreciationProperty TaxesTotal CostsSupervisor's SalaryIndirect LaborIndirect MaterialsUtilities

$

$

$

UFNA

UtilitiesTotal CostsMaintenanceSupervisor's SalaryIndirect MaterialsDepreciationProperty TaxesIndirect Labor

FNAU

Supervisor's SalaryIndirect MaterialsIndirect LaborUtilitiesMaintenanceDepreciationProperty TaxesTotal Costs

UNAF

Indirect LaborDepreciationUtilitiesMaintenanceProperty TaxesTotal CostsSupervisor's SalaryIndirect Materials

UFNA

MaintenanceDepreciationUtilitiesProperty TaxesTotal CostsSupervisor's SalaryIndirect MaterialsIndirect Labor

NAUF

MaintenanceDepreciationIndirect MaterialsTotal CostsProperty TaxesUtilitiesIndirect LaborSupervisor's Salary

FUNA

Supervisor's SalaryIndirect LaborUtilitiesProperty TaxesMaintenanceTotal CostsIndirect MaterialsDepreciation

$

$

$

NAUF