The manufacturing overhead budget for Dillons Company contains the following items:

The budget was based on an estimated 2,000 units being produced. During the past month, 1,500 units were produced, and the following costs were incurred:

Instructions
(a) Determine which items would be controllable by Hideko Shitaki, the production manager.
(b) How much should have been spent during the month for the manufacture of the 1,500 units?
(c) Prepare a flexible manufacturing overhead budget report for Hideko.
(d) Prepare a responsibility report. Include only the costs that Hideko could have controlled. Assume that the supervision cost above includes the salary of Constantin Farris, the supervisor, of $10,000. In an attached memo, describe clearly for Hideko the areas in which her performance needs to be improved.

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Variable expenses Indirect materials Indirect labour Maintenance expenses Manufacturing supplies $24,000 12,000 10,000 ー6,000 $52,000 Total variable expenses Fixed expenses Supervision Inspection costs Insurance expenses Depreciation $18,000 1,000 2,000 15,000 $36,000 Total fixed expenses Variable expenses Indirect materials Indirect labour Maintenance expenses Manufacturing supplies $24,200 13,500 8,200 5,100 $51,000 Total variable expenses Fixed expenses Supervision Inspection costs Insurance expenses Depreciation $19,300 1,200 2,200 14,700 $37,400 Total fixed expenses