Budgeted overhead costs for the first quarter of 2022 for the machining department of Blossom Industries Ltd. are as follows: Indirect labour $30,000: property taxes $3.100; indirect materials $24,200 rent $3.700 lubricants $8.200 salaries $24.200 maintenance $12,800; utilities $13.200. Actual costs incurred for the first quarter of 2022 are indirect labour $31.450, indirect materials $26.200; lubricants $6,400 maintenance $11,150, property taxes $3,100; rent $3,700; salaries $24.200 and utilities $14,250. The machining manager cannot control rent, salaries, and property taxes Prepare a responsibility report for the first quarter of 2022.
Budgeted overhead costs for the first quarter of 2022 for the machining department of Blossom Industries Ltd. are as follows: Indirect labour $30,000: property taxes $3.100; indirect materials $24,200 rent $3.700 lubricants $8.200 salaries $24.200 maintenance $12,800; utilities $13.200. Actual costs incurred for the first quarter of 2022 are indirect labour $31.450, indirect materials $26.200; lubricants $6,400 maintenance $11,150, property taxes $3,100; rent $3,700; salaries $24.200 and utilities $14,250. The machining manager cannot control rent, salaries, and property taxes Prepare a responsibility report for the first quarter of 2022.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Transcribed Image Text:Budgeted overhead costs for the first quarter of 2022 for the machining department of Blossom Industries Ltd. are as follows:
Indirect labour $30,000; property taxes $3,100; indirect materials $24,200; rent $3,700; lubricants $8.200; salaries $24.200,
maintenance $12,800; utilities $13,200
Actual costs incurred for the first quarter of 2022 are indirect labour $31.450; indirect materials $26,200; lubricants $6,400
maintenance $11.150. property taxes $3,100; rent $3,700; salaries $24.200; and utilities $14,250.
The machining manager cannot control rent, salaries, and property taxes.
Prepare a responsibility report for the first quarter of 2022.
Budget
$
Budget
Budget
Blossom Industries Ltd.
Machining Department
Responsibility Report
Actual
$
Blossom Industries Ltd.
Machining Department
Responsibility Report
Actual
Blossom Industries Ltd.
Machining Department
Responsibility Report
Actual
$
Diff
Favi
Unfa
Neither Favoural
Dire
Favi
Unfa
Neither Favoural
Difference
Favourable
Unfavourable.
Neither Favourable nor Unfavourable
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