Exercise 22-10 Your answer is partially correct. Try again. Chubbs Inc.'s manufacturing overhead budget for the first quarter of 2017 contained the following data. Variable Costs Fixed Costs Indirect materials Indirect labor $11,900 10,700 7,200 5,600 Supervisory salaries Depreciation Property taxes and insurance Maintenance $36,600 6,800 7,200 4,800 Utilities Maintenance Actual variable costs were indirect materials $14,500, indirect labor $9,300, utilities $9,000, and maintenance $4,900. Actual fixed costs equaled budgeted costs except for property taxes and insurance, which were $9,100. The actual activity level equaled the budgeted level. All costs are considered controllable by the production department manager except for depreciation, and property taxes and insurance. (a) Prepare a manufacturing overhead flexible budget report for the first quarter. (List variable costs before fixed costs.) CHUBBS INC. Manufacturing Overhead Flexible Budget Report For the Quarter Ended March 31, 2017 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Variable Costs Indirect Materials 11,900 14,500 2,600 Unfavorable Indirect Labor 10,700 9,300 1,400 Favorable Utilities 7,200 9,000 1,800|| Unfavorable Maintenance 5,600 4,900 700||Favorable Total Variable Costs 35,400 37,700 2,300|| Unfavorable Fixed Costs Supervisory Salaries 36,600 36,600 Neither Favorable nor Unfavorable Depreciation 6,800 6,800 Neither Favorable nor Unfavorable Property Taxes and Insurance 7,200 9,100 1,900 Unfavorable Maintenance 4,800 4,800 X X Total Fixed Costs 55,400 52,500 2,900 Favorable Total Costs 90,800 90,200 600 Favorable (b) Prepare a responsibility report for the first quarter. CHUBBS INC. Manufacturing Overhead Responsibility Report For the Quarter Ended March 31, 2017 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Controllable Costs Budget Actual Indirect Materials 11,900 14,500 2,600 Unfavorable Indirect Labor 10,700 9,300 1,400 Favorable > Utilities 7,200 9,000 1,800|Unfavorable x Maintenance 4,800 4,800 700 Favorable Supervisory Salaries 36,600 36,600 Neither Favorable nor Unfavorable v > 76,800 79,100 PH 2,300 Unfavorable