Question

Strickland Corp.'s manufacturing overhead budget for the first quarter of 2019 contained the following data: Variable Costs Indirect materials $40,000 Indirect labor 24,000 Utilities 20,000 Maintenance 12,000 Fixed Costs Supervisor's salary $80,000 Depreciation 16,000 Property taxes 8,000 Actual variable costs for the first quarter were: Indirect materials $37,200 Indirect labor 26,400 Utilities 21,000 Maintenance 10,600 Actual fixed costs were as expected except for property taxes which were $9,000. All costs are considered controllable by the department manager except for the supervisor's salary. Prepare a manufacturing overhead responsibility performance report for the first quarter.

Answer 1

Answer and Explanation:

The Preparation of manufacturing overhead responsibility performance report for the first quarter is shown below:-

Strickland Corp.'s

Manufacturing overhead cost responsibility report

For the report Quarter ended

Controllable costs Budget Actual Difference

Indirect material $40,000 $37,200 $2,800 Favorable

Indirect labor $24,000 $26,400 $2,400 Unfavorable

Utilities $20,000 $21,000 $1,000 Favorable

Maintenance $12,000 $10,600 $1,,400 Favorable

Depreciation $16,000 $16,000 -

Property taxes $8,000 $9,000 $1,000 Unfavorable