Chubbs Inc.'s manufacturing overhead budget for the first quarter of 2017 contained the following data. Variable Costs Indirect materials Indirect labor Utilities Maintenance $11,800 10,700 8,000 5,600 Fixed Costs Supervisory salaries Depreciation Property taxes and insurance Maintenance $35,500 6,700 7,600 5,900 Actual variable costs were indirect materials $14,700, indirect labor $9,600, utilities $9,800, and maintenance $5,100. Actual fixed costs equaled budgeted costs except for property taxes and insurance, which were $8,600. 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.
Chubbs Inc.'s manufacturing overhead budget for the first quarter of 2017 contained the following data. Variable Costs Indirect materials Indirect labor Utilities Maintenance $11,800 10,700 8,000 5,600 Fixed Costs Supervisory salaries Depreciation Property taxes and insurance Maintenance $35,500 6,700 7,600 5,900 Actual variable costs were indirect materials $14,700, indirect labor $9,600, utilities $9,800, and maintenance $5,100. Actual fixed costs equaled budgeted costs except for property taxes and insurance, which were $8,600. 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Transcribed Image Text:Chubbs Inc's manufacturing overhead budget for the first quarter of 2017 contained the following data.
Variable Costs
Indirect materials
Indirect labor
Utilities
Maintenance
$11.800 Supervisory salaries
10,700
Depreciation
Property taxes and insurance
Maintenance
8,000
Fixed Costs
5,600
$35,500
6,700
7,600
5,900
Actual variable costs were indirect materials $14,700, indirect labor $9,600, utilities $9,800, and maintenance $5,100. Actual fixed
costs equaled budgeted costs except for property taxes and insurance, which were $8,600. 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.
Transcribed Image Text:(a) Prepare a manufacturing overhead flexible budget report for the first quarter. (List variable costs before fixed costs.)
O
llable Costs
O
0
O
O
O
0
O
O
O
O
O
O
O
O
(b) Prepare a responsibility report for the first quarter.
O
O
$
O
$
Budget
$
CHUBBS INC.
Manufacturing Overhead Flexible Budget Report
For the Quarter Ended March 31, 2017
Budget
$
Actual
$
CHUBBS INC.
Manufacturing Overhead Responsibility Report
For the Quarter Ended March 31, 2017
$
Actual
$
Difference
Favorable
Unfavorable
Neither Favorable
nor Unfavorable
Difference
Favorable
Unfavorable.
Neither Favorable.
nor Unfavorable
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