Waterways Corporation is continuing its budget preparations. Waterways had the following static budget and overhead costs for March 2017.

Waterways produced 118,500 units in March rather than the budgeted number of units.

>Prepare a flexible overhead budget based on the following amounts produced. (Round unit costs to 2 decimal places, e.g. 2.25. List variable costs before fixed costs.)

(1)		115,500 units
(2)		116,500 units
(3)		117,500 units
(4)		118,500 units
(5)		119,500 units

>Prepare a flexible budget report showing the differences (favorable and unfavorable) in manufacturing overhead costs for the month of March. (List variable costs before fixed costs. Do not leave any answer field blank. Enter 0 for amounts.)

>

Prepare a responsibility report for the manufacturing overhead for March, assuming only variable costs are controllable.

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WATERWAYS CORPORATION Manufacturing Overhead Budget (Static) For the Month of March 2017 Budgeted production in units 117,500 Budgeted costs Indirect materials $5,875 Indirect labor 14,100 Utilities 11,750 Maintenance 8,225 Salaries 42,000 Depreciation 16,800 Property taxes 3,000 Insurance 1,200 Janitorial 1,500 Total budgeted costs $104,450 WATERWAYS CORPORATION Manufacturing Overhead Costs (Actual) For the Month of March 2017 Production in units 118,500 Costs Indirect materials $5,910 Indirect labor 14,195 Utilities 11,880 Maintenance 8,275 Salaries 42,000 Depreciation 16,800 Property taxes 3,000 Insurance 1,200 Janitorial 1,500 Total costs $104,760 WATERWAYS CORPORATION Manufacturing Overhead Budget (Static) For the Month of March 2017 Budgeted production in units 117,500 Budgeted costs Indirect materials $5,875 Indirect labor 14,100 Utilities 11,750 Maintenance 8,225 Salaries 42,000 Depreciation 16,800 Property taxes 3,000 Insurance 1,200 Janitorial 1,500 Total budgeted costs $104,450 WATERWAYS CORPORATION Manufacturing Overhead Costs (Actual) For the Month of March 2017 Production in units 118,500 Costs Indirect materials $5,910 Indirect labor 14,195 Utilities 11,880 Maintenance 8,275 Salaries 42,000 Depreciation 16,800 Property taxes 3,000 Insurance 1,200 Janitorial 1,500 Total costs $104,760

Answer rating: 100% (QA)

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