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:

Actual costs incurred for January 2012 are indirect labor $12,200; indirect materials $10,200; lubricants $1,650; maintenance $3,500; property taxes $1,100; rent $1,800; salaries $10,000; and utilities $6,500.

Instructions
(a) Prepare a responsibility report for January 2012.
(b) What would be the likely result of management€™s analysis of thereport?

Transcribed Image Text:

Property taxes 1,000 Indirect labor Indirect materials Lubricants Maintenance 12,000 7,500 1,700 Rent Salaries Utilities 1,800 10,000