The manufacturing overhead budget for Fleming 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 incurred.

Instructions
(a) Determine which items would be controllable by Fred Bedner, 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 Mr. Bedner.
(d) Prepare a responsibility report. Include only the costs that would have been controllable by Mr. Bedner. Assume that the supervision cost above includes Mr. Bedner€™s salary of $10,000, both at budget and actual. In an attached memo, describe clearly for Mr. Bedner the areas in which his performance needs to beimproved.

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