Sublette Company's manufacturing overhead budget for the first quarter of 2016 contained the following data:

Actual variable costs were as follows: indirect materials $5,000. Actual fixed costs equalled the budgeted costs except for property taxes and insurance, which were $8,400. The production department manager can control all costs except for depreciation and property taxes and insurance.
Instructions
(a) Prepare a flexible overhead budget report for the first quarter.
(b) Prepare a responsibility report for the first quarter.

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Variable Costs Fixed Costs salaries Indirect materials Indirect labour Utilities Maintenance $12,000 10,000 8,000 6,000 Supervisory Depreciation Property taxes and insurance Maintenance $36,000 7,000 8,000 5,000