Pikes Peak Community CollegX2 myppCC-Liferay-Web02 Module 5: Mini Practice Probl
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Question
Pikes Peak Community CollegX2 myppCC-Liferay-Web02 Module 5: Mini Practice Proble X C Chegg Study | Guided Solution X ? https://coco.desire2learn 21993/viewContent/21499, ? a Search B&L; Landscapes, Inc. Mini Practice Part 5 Bill Graham and Larry Miller incorporated B&L; Landscapes, Inc. on July 1, 2014. The business consists of lawn care and sprinkler system installations. In addition, they also sell two types of fertilizer During 2015, B&L; Landscapes, Inc. acquired a 30% interest in Crestline Pipe. The president of Crestline wants to develop a management report to evaluate Manufacturing Overhead costs Bill and Larry want to help and have volunteered your services to provide some managerial reporting for Crestline Crestline Pipe distributes high-quality PVC pipe and has the following information for the month of March, 2015 Crestline Pipe Manufacturing Overhead Budget (Static) For the Month of March, 2015 Budgeted production in LF 117500 Budgeted costs Indirect materials $0.30/DLH) 7,050 Indirect labor ($0.50/DLH) 11,750 9,400 875 Utilities ($0.40/DLH) aintenance $0.25/DLH) 12:57 PM O Type here to search ? 4/27/2018Explanation / Answer
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The costs for which there is a significant favorable or unfavorable variance and which are controllable should be investigated further such as the utilities cost.
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The controllable manufacturing overhead costs are those costs which can be controlled or influenced by the manufacturing manager. The responsibility report shows how well the manufacturing manager has been able to control these costs which are within his sphere of influence. From the responsibility report for the month of March it is seen that there is an unfavorable variance of $1160 which means that the actual costs have exceeded the budgeted costs and the manager has not been able to control the costs which is a negative indicator of his/her performance.
B&L LANDSCAPRES, INC. Manufacturing Overhead Flexible Budget For the Month of March, 2015 Production in LF 115500 116500 117500 118500 119500 Variable costs Indirect materials 6930 6990 7050 7110 7170 Indirect labor 11550 11650 11750 11850 11950 Utilities 9240 9320 9400 9480 9560 Maintenance 5775 5825 5875 5925 5975 Total variable costs 33495 33785 34075 34365 34655 Fixed costs Salaries 42000 42000 42000 42000 42000 Depreciation 16800 16800 16800 16800 16800 Property taxes 2500 2500 2500 2500 2500 Insurance 1200 1200 1200 1200 1200 Janitorial 1300 1300 1300 1300 1300 Total fixed costs 63800 63800 63800 63800 63800 Total budgeted costs 97295 97585 97875 98165 98455