The Mixing Department manager of Malone Company is able to control all overhead costs except rent, property taxes, and salaries. Budgeted monthly overhead costs for the Mixing Department, in alphabetical order, are:
Indirect labor ..... $12,000
Property taxes .... $ 1,000
Indirect materials .... 7,700
Rent ......... 1,800
Lubricants ...... 1,675
Salaries ........ 10,000
Maintenance ..... 3,500
Utilities ........ 5,000

Actual costs incurred for January 2014 are indirect labor $12,250; indirect materials $10,200; lubricants $1,650; maintenance $3,500; property taxes $1,100; rent $1,800; salaries $10,000; and utilities $6,400.

Instructions
(a) Prepare a responsibility report for January 2014.
(b) What would be the likely result of management’s analysis of the report?