Chubbs Inc.’s manufacturing overhead budget for the first quarter of 2020 contained the following data.

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 13CE: Nashler Company has the following budgeted variable costs per unit produced: Budgeted fixed overhead...
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Chubbs Inc.’s manufacturing overhead budget for the first quarter of 2020 contained the following data.

Variable Costs
 
Fixed Costs
Indirect materials   $11,300   Supervisory salaries   $36,600
Indirect labor   10,600   Depreciation   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.)

CHUBBS INC.
Manufacturing Overhead Flexible Budget Report
For the Quarter Ended March 31, 2020
           
Difference
   

Budget
 

Actual
 
Favorable
Unfavorable

Neither Favorable
nor Unfavorable
Select an opening line for section one                                                           DepreciationFixed CostsIndirect LaborIndirect MaterialsMaintenanceProperty Taxes and InsuranceSupervisory SalariesTotal CostsTotal Fixed CostsTotal Variable CostsUtilitiesVariable Costs
             
Select an overhead flexible budget report item
 
$Enter a dollar amount 
 
 
 
$Enter the difference 
Select an option                                                           FavorableUnfavorableNeither Favorable nor Unfavorable
Select an overhead flexible budget report item
 
Enter a dollar amount
     
Enter the difference
Select an option                                                           FavorableUnfavorableNeither Favorable nor Unfavorable
Select an overhead flexible budget report item
 
Enter a dollar amount
     
Enter the difference
Select an option                                                           FavorableUnfavorableNeither Favorable nor Unfavorable
Select an overhead flexible budget report item 
 
Enter a dollar amount
     
Enter the difference
Select an option                                                           FavorableUnfavorableNeither Favorable nor Unfavorable
Select a closing line for section one 
 
Enter a total amount for section one
     
Enter the difference
Select an option                                                           FavorableUnfavorableNeither Favorable nor Unfavorable
Select an opening line for section two
             
Select an overhead flexible budget report item 
 
Enter a dollar amount
      Enter the difference
Select an option                                                           FavorableUnfavorableNeither Favorable nor Unfavorable
Select an overhead flexible budget report item
 
Enter a dollar amount
     
Enter the difference
Select an option                                                           FavorableUnfavorableNeither Favorable nor Unfavorable
Select an overhead flexible budget report item
 
Enter a dollar amount
     
Enter the difference
Select an option                                                           FavorableUnfavorableNeither Favorable nor Unfavorable
Select an overhead flexible budget report item 
 
Enter a dollar amount
     
Enter the difference
Select an option                                                           FavorableUnfavorableNeither Favorable nor Unfavorable
Select a closing line for section two
 
Enter a total amount for section two
     
Enter the difference
Select an option                        
Select a closing line for the overhead flexible budget report 
 
$Enter a total dollar amount 
 
 
 
$Enter the difference 
Select an option                          


(b) Prepare a responsibility report for the first quarter.

CHUBBS INC.
Manufacturing Overhead Responsibility Report
For the Quarter Ended March 31, 2020
           
Difference

Controllable Costs
 

Budget
 

Actual
 
Favorable
Unfavorable

Neither Favorable
nor Unfavorable
Select an opening overhead responsibility report item                                                           Indirect MaterialsIndirect LaborMaintenanceSupervisory SalariesUtilitiesProperty Taxes and InsuranceDepreciation
  $Enter a dollar amount        $Enter the difference 
Select an option                                                           FavorableUnfavorableNeither Favorable nor Unfavorable
Select an overhead responsibility report item
 
Enter a dollar amount
     
Enter the difference
Select an option                          
Select an overhead responsibility report item
 
Enter a dollar amount
     
Enter the difference
Select an option                        
Select an overhead responsibility report item
 
Enter a dollar amount
     
Enter the difference
Select an option                           
Select a closing overhead responsibility report item  
 
Enter a dollar amount
     
Enter the difference
Select an option                         
   
$Enter a total dollar amount 
 
 
 
$Enter the difference 
Select an option                                                          
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