Pletcher Company\'s manufacturing overhead budget for the first quarter of 2008
ID: 2387105 • Letter: P
Question
Pletcher Company's manufacturing overhead budget for the first quarter of 2008 contained the following data.Variable Costs
Fixed Costs
Indirect materials $12,000 Supervisory salaries $36,000
Indirect labor 10,000 Depreciation 7,000
Utilities 8,000 Property taxes and insurance 8,000
Maintenance 6,000 Maintenance 5,000
Actual variable costs were: indirect materials $13,800, indirect labor $9,600, utilities $8,700, and maintenance $4,900. Actual fixed costs equaled budgeted costs except for property taxes and insurance, which were $8,200. The actual activity level equaled the budgeted level.
All costs are considered controllable by the production department manager except for depreciation, and property taxes and insurance.
Prepare a flexible manufacturing overhead budget report for the first quarter. (If answer is zero, please enter 0. Do not leave any fields blank.)
PLETCHER COMPANY
Manufacturing Overhead Flexible Budget Report
For the Quarter Ended March 31, 2008
Difference
Favorable F
Budget
Actual
Unfavorable U
Variable costs
Indirect materials $ $ $
Indirect labor
Utilities
Maintenance
Total variable costs
Fixed costs
Supervisory salaries
Depreciation
Prop. taxes & ins.
Maintenance
Total fixed costs
Total costs
$
$
$
Prepare a responsibility report for the first quarter. (If answer is zero, please enter 0. Do not leave any fields blank.)
PLETCHER COMPANY
Manufacturing Overhead Responsibility Report
For the Quarter Ended March 31, 2008
Difference
Favorable F
Controllable Costs
Budget
Actual
Unfavorable U
Indirect materials $ $ $
Indirect labor
Utilities
Maintenance
Supervisory salaries
Total costs
$
$
$
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Explanation / Answer
Budgeted Actual Variable Cost: Costs Costs Difference Rating Indirect Materials 12000 13800 1800 Unfavorable Indirect Labor 10000 9600 -400 Favorable Utilities 8000 8700 700 Unfavorable Maintanance 6000 4900 -1100 Favorable Total Variable Costs: - (A) 36000 37000 1000 Unfavorable Fixed Costs: 0 Supervisor Salary 36000 36000 0 Depreciation 7000 7000 0 Tax & Insurance 8000 8200 200 Unfavorable Maintanance 5000 5000 0 Total Fixed Cost: - (B) 56000 56200 200 Unfavorable Total Cost - (A + B) 92000 93200 1200 Unfavorable Budgeted Actual Variable Cost: Costs Costs Difference Rating Indirect Materials 12000 13800 1800 Unfavorable Indirect Labor 10000 9600 -400 Favorable Utilities 8000 8700 700 Unfavorable Maintanance 6000 4900 -1100 Favorable Total Variable Costs: - (A) 36000 37000 1000 Unfavorable Fixed Costs: 0 Supervisor Salary 36000 36000 0 Depreciation 7000 7000 0 Tax & Insurance 8000 8200 200 Unfavorable Maintanance 5000 5000 0 Total Fixed Cost: - (B) 56000 56200 200 Unfavorable Total Cost - (A + B) 92000 93200 1200 UnfavorableNote: There is no any production levels in this problem thats why I treated total budgeted and actual productions are same. Thank you.... Budgeted Actual Variable Cost: Costs Costs Difference Rating Indirect Materials 12000 13800 1800 Unfavorable Indirect Labor 10000 9600 -400 Favorable Utilities 8000 8700 700 Unfavorable Maintanance 6000 4900 -1100 Favorable Total Variable Costs: - (A) 36000 37000 1000 Unfavorable Fixed Costs: 0 Supervisor Salary 36000 36000 0 Depreciation 7000 7000 0 Tax & Insurance 8000 8200 200 Unfavorable Maintanance 5000 5000 0 Total Fixed Cost: - (B) 56000 56200 200 Unfavorable Total Cost - (A + B) 92000 93200 1200 Unfavorable