Question

In the Assembly Department of Hannon Company, budgeted and actual manufacturing overhead costs for the month of April 2017 were as follows.

Budget Actual
Indirect materials $14,200 $13,700
Indirect labor 19,100 19,900
Utilities 11,400 12,100
Supervision 4,600 4,600
All costs are controllable by the department manager.
Prepare a responsibility report for April for the cost center.

Answer 1

HANNON COMPANY

Assembly Department

Manufacturing Overhead Cost Responsibility Report

For the Month Ended April 30,2017

Controllable Cost Budget$ Actual$ Difference$ Remark

Indirect materials 14,200 13,700 500 Favourable

Indirect Labor 19,100 19,900 -800 Unfavourable

Utilities 11,400 12,100 -700 Unfavourable

Supervision 4,600 4,600 0 None

Total 49,300 50,300 -1,000 Unfavourable