Chubbs Inc.’s manufacturing overhead budget for the first quarter of 2020 contained the following data.
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.
Chubbs Inc.’s manufacturing
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Variable Costs
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Fixed Costs
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| Indirect materials | $11,300 | Supervisory salaries | $36,600 | |||
| Indirect labor | 10,600 | 7,700 | ||||
| Utilities | 7,700 | Property taxes and insurance | 8,000 | |||
| Maintenance | 5,700 | Maintenance | 5,300 |
Actual variable costs were indirect materials $15,300, indirect labor $9,300, utilities $9,600, and maintenance $5,100. Actual fixed costs equaled budgeted costs except for property taxes and insurance, which were $9,100. The actual activity level equaled the budgeted level.
All costs are considered controllable by the production department manager except for depreciation, and property taxes and insurance.
(a) Prepare a manufacturing overhead flexible budget report for the first quarter. (List variable costs before fixed costs.)
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CHUBBS INC.
Manufacturing Overhead Flexible Budget Report For the Quarter Ended March 31, 2020 |
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Difference
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Budget |
Actual |
Favorable
Unfavorable Neither Favorable nor Unfavorable |
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Select an opening line for section one DepreciationFixed CostsIndirect LaborIndirect MaterialsMaintenanceProperty Taxes and InsuranceSupervisory SalariesTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs
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Select an overhead flexible budget report item
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$Enter a dollar amount
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$Enter the difference
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Select an option FavorableUnfavorableNeither Favorable nor Unfavorable
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Select an overhead flexible budget report item
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Enter a dollar amount
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Enter the difference
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Select an option FavorableUnfavorableNeither Favorable nor Unfavorable
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Select an overhead flexible budget report item
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Enter a dollar amount
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Enter the difference
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Select an option FavorableUnfavorableNeither Favorable nor Unfavorable
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Select an overhead flexible budget report item
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Enter a dollar amount
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Enter the difference
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Select an option FavorableUnfavorableNeither Favorable nor Unfavorable
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Select a closing line for section one
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Enter a total amount for section one
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Enter the difference
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Select an option FavorableUnfavorableNeither Favorable nor Unfavorable
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Select an opening line for section two
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Select an overhead flexible budget report item
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Enter a dollar amount
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Enter the difference |
Select an option FavorableUnfavorableNeither Favorable nor Unfavorable
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Select an overhead flexible budget report item
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Enter a dollar amount
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Enter the difference
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Select an option FavorableUnfavorableNeither Favorable nor Unfavorable
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Select an overhead flexible budget report item
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Enter a dollar amount
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Enter the difference
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Select an option FavorableUnfavorableNeither Favorable nor Unfavorable
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Select an overhead flexible budget report item
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Enter a dollar amount
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Enter the difference
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Select an option FavorableUnfavorableNeither Favorable nor Unfavorable
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Select a closing line for section two
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Enter a total amount for section two
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Enter the difference
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Select an option
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Select a closing line for the overhead flexible budget report
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$Enter a total dollar amount
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$Enter the difference
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Select an option
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(b) Prepare a responsibility report for the first quarter.
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CHUBBS INC.
Manufacturing Overhead Responsibility Report For the Quarter Ended March 31, 2020 |
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Difference
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Controllable Costs |
Budget |
Actual |
Favorable
Unfavorable Neither Favorable nor Unfavorable |
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Select an opening overhead responsibility report item Indirect MaterialsIndirect LaborMaintenanceSupervisory SalariesUtilitiesProperty Taxes and InsuranceDepreciation
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$Enter a dollar amount | $Enter the difference |
Select an option FavorableUnfavorableNeither Favorable nor Unfavorable
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Select an overhead responsibility report item
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Enter a dollar amount
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Enter the difference
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Select an option
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Select an overhead responsibility report item
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Enter a dollar amount
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Enter the difference
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Select an option
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Select an overhead responsibility report item
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Enter a dollar amount
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Enter the difference
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Select an option
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Select a closing overhead responsibility report item
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Enter a dollar amount
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Enter the difference
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Select an option
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$Enter a total dollar amount
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$Enter the difference
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Select an option
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