E23-9B Sophia Company's manufacturing overhead budget for the first quarter of 2017 contained the following data. Variable Costs Indirect materials $13,000 Indirect labor 10,000 Utilities 8,000 Maintenance 6,000 Fixed Costs Supervisory salaries Depreciation Property taxes and insurance Maintenance $36,000 7,000 6,000 5,000 Actual variable costs were: indirect materials $16,000, indirect labor $9,700, utilities $8,700, and maintenance $5,500. Actual fixed costs equaled budgeted costs except for property taxes and insurance, which were $5,900. All costs are considered controllable by the production department manager except for depreciation, and property taxes and insurance. Instructions (a) Prepare a flexible manufacturing overhead budget report for the first quarter. (b) Prepare a responsibility report for the first quarter.

E23-9B Sophia Company's manufacturing overhead budget for the first quarter of 2017 contained the following data. Variable Costs Indirect materials $13,000 Indirect labor 10,000 Utilities 8,000 Maintenance 6,000 Fixed Costs Supervisory salaries Depreciation Property taxes and insurance Maintenance $36,000 7,000 6,000 5,000 Actual variable costs were: indirect materials $16,000, indirect labor $9,700, utilities $8,700, and maintenance $5,500. Actual fixed costs equaled budgeted costs except for property taxes and insurance, which were $5,900. All costs are considered controllable by the production department manager except for depreciation, and property taxes and insurance. Instructions (a) Prepare a flexible manufacturing overhead budget report for the first quarter. (b) Prepare a responsibility report for the first quarter.

FINANCIAL ACCOUNTING

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Chapter1: Financial Statements And Business Decisions

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Concept explainers

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.

Question

E23-9B Sophia Company's manufacturing overhead budget for the first quarter of 2017
contained the following data.
Variable Costs
Indirect materials $13,000
Indirect labor
10,000
Utilities
8,000
Maintenance
6,000
Fixed Costs
Supervisory salaries
Depreciation
Property taxes and insurance
Maintenance
$36,000
7,000
6,000
5,000
Actual variable costs were: indirect materials $16,000, indirect labor $9,700, utilities
$8,700, and maintenance $5,500. Actual fixed costs equaled budgeted costs except for
property taxes and insurance, which were $5,900.
All costs are considered controllable by the production department manager except for
depreciation, and property taxes and insurance.
Instructions
(a) Prepare a flexible manufacturing overhead budget report for the first quarter.
(b) Prepare a responsibility report for the first quarter.

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Overhead rate per hour?
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