Pletcher Company's manufacturing overhead budget for the firstquarter of 2008 contained the following data.
Variable Costs
Fixed Costs
Indirect materials $12,000 Supervisory salaries $36,000
Indirect labor 10,000 Depreciation 7,000
Utilities 8,000 Property taxes and insurance 8,000
Maintenance 6,000 Maintenance 5,000
Actual variable costs were: indirect materials $13,800, indirectlabor $9,600, utilities $8,700, and maintenance $4,900. Actualfixed costs equaled budgeted costs except for property taxes andinsurance, which were $8,200. The actual activity level equaled thebudgeted level.
All costs are considered controllable by the production departmentmanager except for depreciation, and property taxes andinsurance.
Prepare a flexible manufacturing overhead budget report for thefirst quarter. (If answer is zero, please enter 0. Do not leave anyfields blank.)
PLETCHER COMPANY
Manufacturing Overhead Flexible Budget Report
For the Quarter Ended March 31, 2008
Difference
Favorable F
Budget
Actual
Unfavorable U
Variable costs
Indirect materials $ $ $
Indirect labor
Utilities
Maintenance
Total variable costs
Fixed costs
Supervisory salaries
Depreciation
Prop. taxes & ins.
Maintenance
Total fixed costs
Total costs
$
$
$
Prepare a responsibility report for the first quarter. (If answeris zero, please enter 0. Do not leave any fields blank.)
PLETCHER COMPANY
Manufacturing Overhead Responsibility Report
For the Quarter Ended March 31, 2008
Difference
Favorable F
Controllable Costs
Budget
Actual
Unfavorable U
Indirect materials $ $ $
Indirect labor
Utilities
Maintenance
Supervisory salaries
Total costs
$
$
$
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Variable Costs
Fixed Costs
Indirect materials $12,000 Supervisory salaries $36,000
Indirect labor 10,000 Depreciation 7,000
Utilities 8,000 Property taxes and insurance 8,000
Maintenance 6,000 Maintenance 5,000
Actual variable costs were: indirect materials $13,800, indirectlabor $9,600, utilities $8,700, and maintenance $4,900. Actualfixed costs equaled budgeted costs except for property taxes andinsurance, which were $8,200. The actual activity level equaled thebudgeted level.
All costs are considered controllable by the production departmentmanager except for depreciation, and property taxes andinsurance.
Prepare a flexible manufacturing overhead budget report for thefirst quarter. (If answer is zero, please enter 0. Do not leave anyfields blank.)
PLETCHER COMPANY
Manufacturing Overhead Flexible Budget Report
For the Quarter Ended March 31, 2008
Difference
Favorable F
Budget
Actual
Unfavorable U
Variable costs
Indirect materials $ $ $
Indirect labor
Utilities
Maintenance
Total variable costs
Fixed costs
Supervisory salaries
Depreciation
Prop. taxes & ins.
Maintenance
Total fixed costs
Total costs
$
$
$
Prepare a responsibility report for the first quarter. (If answeris zero, please enter 0. Do not leave any fields blank.)
PLETCHER COMPANY
Manufacturing Overhead Responsibility Report
For the Quarter Ended March 31, 2008
Difference
Favorable F
Controllable Costs
Budget
Actual
Unfavorable U
Indirect materials $ $ $
Indirect labor
Utilities
Maintenance
Supervisory salaries
Total costs
$
$
$
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Question Attempts: 0 of 3 used Save for late Submit Answer
Copyright © 2000-2011 by John Wiley & Sons, Inc. or relatedcompanies. All rights reserved.
Related questions
Exercise 10-9
Lowell Companyâs manufacturing overhead budget for the firstquarter of 2014 contained the following data.
Variable Costs | Fixed Costs | |||||
Indirect materials | $11,749 | Supervisory salaries | $36,825 | |||
Indirect labor | 10,177 | Depreciation | 6,782 | |||
Utilities | 7,296 | Property taxes and insurance | 7,225 | |||
Maintenance | 5,613 | Maintenance | 4,034 | |||
Actual variable costs were: indirect materials $15,246, indirectlabor $9,315, utilities $9,022, and maintenance $4,987. Actualfixed costs equaled budgeted costs except for property taxes andinsurance, which were $8,665. The actual activity level equaled thebudgeted level.
All costs are considered controllable by the production departmentmanager except for depreciation, and property taxes andinsurance.
(a) Prepare a manufacturing overhead flexiblebudget report for the first quarter. (List variablecosts before fixed costs.)
LOWELL COMPANY | ||||
Difference | ||||
|
| Favorable F | ||
Fixed CostsDepreciationTotal CostsIndirect LaborTotal FixedCostsMaintenanceIndirect MaterialsProperty Taxes andInsuranceSupervisory SalariesTotal Variable CostsUtilitiesVariableCosts | ||||
Total Variable CostsIndirect MaterialsSupervisorySalariesUtilitiesVariable CostsFixed CostsMaintenanceIndirectLaborProperty Taxes and InsuranceDepreciationTotal CostsTotal FixedCosts | $ | $ | $ | FUN |
Indirect LaborTotal Variable CostsTotalCostsDepreciationIndirect MaterialsTotal FixedCostsMaintenanceProperty Taxes and InsuranceUtilitiesSupervisorySalariesVariable CostsFixed Costs | FUN | |||
MaintenanceSupervisory SalariesTotal CostsIndirect LaborTotalVariable CostsTotal Fixed CostsIndirect MaterialsUtilitiesPropertyTaxes and InsuranceVariable CostsDepreciationFixed Costs | FUN | |||
Supervisory SalariesTotal CostsVariable CostsTotal VariableCostsIndirect MaterialsMaintenanceUtilitiesDepreciationPropertyTaxes and InsuranceTotal Fixed CostsFixed CostsIndirect Labor | FUN | |||
Supervisory SalariesIndirect MaterialsIndirectLaborMaintenanceDepreciationTotal Fixed CostsVariable CostsTotalVariable CostsProperty Taxes and InsuranceFixed CostsUtilitiesTotalCosts | FUN | |||
UtilitiesIndirect MaterialsTotal Fixed CostsMaintenanceTotalVariable CostsDepreciationProperty Taxes and InsuranceSupervisorySalariesVariable CostsFixed CostsIndirect LaborTotal Costs | ||||
Total Fixed CostsTotal Variable CostsProperty Taxes andInsuranceMaintenanceSupervisory SalariesIndirect MaterialsTotalCostsVariable CostsUtilitiesDepreciationIndirect LaborFixedCosts | FUN | |||
MaintenanceIndirect LaborUtilitiesVariable CostsIndirectMaterialsTotal Variable CostsProperty Taxes and InsuranceTotalFixed CostsFixed CostsSupervisory SalariesDepreciationTotalCosts | FUN | |||
UtilitiesTotal CostsTotal Fixed CostsSupervisory SalariesTotalVariable CostsVariable CostsIndirect LaborDepreciationFixedCostsIndirect MaterialsMaintenanceProperty Taxes and Insurance | FUN | |||
UtilitiesSupervisory SalariesVariable CostsProperty Taxes andInsuranceTotal Fixed CostsDepreciationTotal CostsTotal VariableCostsFixed CostsIndirect LaborIndirect MaterialsMaintenance | FUN | |||
Total Variable CostsSupervisory SalariesTotalCostsUtilitiesIndirect MaterialsVariable CostsIndirect LaborTotalFixed CostsMaintenanceProperty Taxes and InsuranceDepreciationFixedCosts | FUN | |||
Total Variable CostsDepreciationFixedCostsMaintenanceSupervisory SalariesTotal CostsProperty Taxes andInsuranceUtilitiesVariable CostsTotal Fixed CostsIndirectLaborIndirect Materials | $ | $ | $ | FUN |
(b) Prepare a responsibility report for the firstquarter.
LOWELL COMPANY | ||||
Difference | ||||
|
|
| Favorable F | |
DepreciationIndirect LaborUtilitiesMaintenanceSupervisorySalariesIndirect MaterialsProperty Taxes and Insurance | $ | $ | $ | FUN |
Indirect LaborMaintenanceProperty Taxes andInsuranceDepreciationSupervisory SalariesUtilitiesIndirectMaterials | FUN | |||
UtilitiesIndirect LaborMaintenanceIndirect MaterialsSupervisorySalariesProperty Taxes and InsuranceDepreciation | FUN | |||
Property Taxes and InsuranceIndirectLaborUtilitiesDepreciationSupervisory SalariesIndirectMaterialsMaintenance | FUN | |||
UtilitiesProperty Taxes and InsuranceDepreciationSupervisorySalariesMaintenanceIndirect MaterialsIndirect Labor | FUN | |||
$ | $ | $ | FUN | |
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Exercise 10-9
Lowell Companyâs manufacturing overhead budget for the firstquarter of 2014 contained the following data.
Variable Costs | Fixed Costs | |||||
Indirect materials | $11,004 | Supervisory salaries | $35,170 | |||
Indirect labor | 10,758 | Depreciation | 6,084 | |||
Utilities | 7,760 | Property taxes and insurance | 7,986 | |||
Maintenance | 5,575 | Maintenance | 5,566 | |||
Actual variable costs were: indirect materials $15,083, indirectlabor $9,497, utilities $9,235, and maintenance $5,111. Actualfixed costs equaled budgeted costs except for property taxes andinsurance, which were $8,225. The actual activity level equaled thebudgeted level.
All costs are considered controllable by the production departmentmanager except for depreciation, and property taxes andinsurance.
(a) Prepare a manufacturing overhead flexiblebudget report for the first quarter. (List variablecosts before fixed costs.)
LOWELL COMPANY | ||||
Difference | ||||
|
| Favorable F | ||
MaintenanceProperty Taxes and InsuranceVariable CostsSupervisorySalariesTotal CostsTotal Fixed CostsTotal VariableCostsUtilitiesIndirect MaterialsDepreciationFixed CostsIndirectLabor | ||||
Total Fixed CostsTotal CostsMaintenanceSupervisorySalariesProperty Taxes and InsuranceIndirect LaborFixedCostsVariable CostsDepreciationUtilitiesTotal VariableCostsIndirect Materials | $ | $ | $ | FUN |
MaintenanceTotal Fixed CostsTotalCostsUtilitiesDepreciationSupervisory SalariesFixed CostsIndirectLaborProperty Taxes and InsuranceIndirect MaterialsTotal VariableCostsVariable Costs | FUN | |||
Total Variable CostsUtilitiesVariable CostsMaintenanceTotalCostsProperty Taxes and InsuranceSupervisory SalariesTotal FixedCostsDepreciationFixed CostsIndirect LaborIndirect Materials | FUN | |||
Indirect LaborProperty Taxes and InsuranceSupervisorySalariesTotal CostsTotal Fixed CostsUtilitiesIndirectMaterialsMaintenanceFixed CostsTotal Variable CostsVariableCostsDepreciation | FUN | |||
Property Taxes and InsuranceVariable CostsSupervisorySalariesTotal CostsTotal Variable CostsUtilitiesIndirectMaterialsTotal Fixed CostsDepreciationMaintenanceIndirectLaborFixed Costs | FUN | |||
Supervisory SalariesTotal CostsTotal Fixed CostsMaintenanceTotalVariable CostsUtilitiesProperty Taxes and InsuranceVariableCostsDepreciationFixed CostsIndirect LaborIndirect Materials | ||||
DepreciationTotal CostsSupervisory SalariesMaintenanceVariableCostsFixed CostsProperty Taxes and InsuranceUtilitiesIndirectLaborTotal Fixed CostsTotal Variable CostsIndirect Materials | FUN | |||
MaintenanceTotal Variable CostsProperty Taxes andInsuranceSupervisory SalariesFixed CostsTotalCostsDepreciationTotal Fixed CostsIndirect LaborUtilitiesVariableCostsIndirect Materials | FUN | |||
Property Taxes and InsuranceSupervisory SalariesIndirectMaterialsIndirect LaborTotal CostsUtilitiesTotal Fixed CostsFixedCostsMaintenanceVariable CostsDepreciationTotal Variable Costs | FUN | |||
UtilitiesSupervisory SalariesMaintenanceVariable CostsIndirectLaborTotal Variable CostsTotal CostsProperty Taxes andInsuranceDepreciationFixed CostsIndirect MaterialsTotal FixedCosts | FUN | |||
Variable CostsProperty Taxes and InsuranceDepreciationIndirectMaterialsFixed CostsIndirect LaborUtilitiesMaintenanceSupervisorySalariesTotal CostsTotal Fixed CostsTotal Variable Costs | FUN | |||
Indirect MaterialsVariable CostsMaintenanceSupervisorySalariesIndirect LaborTotal Variable CostsDepreciationPropertyTaxes and InsuranceTotal CostsFixed CostsTotal FixedCostsUtilities | $ | $ | $ | FUN |
(b) Prepare a responsibility report for the firstquarter.
LOWELL COMPANY | ||||||
Difference | ||||||
|
|
| Favorable F | |||
Indirect LaborIndirect MaterialsMaintenanceSupervisorySalariesUtilitiesProperty Taxes and InsuranceDepreciation | $ | $ | $ | FUN | ||
Supervisory SalariesMaintenanceUtilitiesIndirectMaterialsProperty Taxes and InsuranceDepreciationIndirect Labor | FUN | |||||
MaintenanceIndirect LaborIndirect MaterialsProperty Taxes andInsuranceSupervisory SalariesUtilitiesDepreciation | FUN | |||||
Property Taxes and InsuranceUtilitiesMaintenanceSupervisorySalariesDepreciationIndirect MaterialsIndirect Labor | FUN | |||||
MaintenanceSupervisory SalariesIndirect MaterialsProperty Taxesand InsuranceUtilitiesDepreciationIndirect Labor | FUN | |||||
$ | $ | $ | FUN | |||
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Exercise 10-14
The Mixing Department manager of Malone Company is able tocontrol all overhead costs except rent, property taxes, andsalaries. Budgeted monthly overhead costs for the MixingDepartment, in alphabetical order, are:
Indirect labor | $12,870 | Property taxes | $1,150 | |||
Indirect materials | 7,980 | Rent | 1,840 | |||
Lubricants | 2,600 | Salaries | 11,860 | |||
Maintenance | 3,820 | Utilities | 6,550 |
Actual costs incurred for January 2014 are indirect labor $13,970;indirect materials $14,070; lubricants $2,070; maintenance $3,820;property taxes $2,050; rent $1,840; salaries $11,860; and utilities$6,540.
Prepare a responsibility report for January 2014.
MALONE COMPANY | ||||
Difference | ||||
|
|
| Favorable F | |
SalariesIndirect MaterialsLubricantsMaintenanceUtilitiesIndirectLaborProperty TaxesRent | $ | $ | $ | FNU |
SalariesProperty TaxesRentUtilitiesIndirect LaborIndirectMaterialsLubricantsMaintenance | NUF | |||
Indirect MaterialsLubricantsRentUtilitiesPropertyTaxesSalariesMaintenanceIndirect Labor | NFU | |||
RentLubricantsSalariesUtilitiesIndirect LaborPropertyTaxesIndirect MaterialsMaintenance | UFN | |||
Indirect LaborRentUtilitiesIndirectMaterialsLubricantsMaintenanceProperty TaxesSalaries | FUN | |||
$ | $ | $ | UFN | |
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Exercise 10-19
The Pletcher Transportation Company uses a responsibilityreporting system to measure the performance of its three investmentcenters: Planes, Taxis, and Limos. Segment performance is measuredusing a system of responsibility reports and return on investmentcalculations. The allocation of resources within the company andthe segment managersâ bonuses are based in part on the resultsshown in these reports.
Recently, the company was the victim of a computer virus thatdeleted portions of the companyâs accounting records. This wasdiscovered when the current periodâs responsibility reports werebeing prepared. The printout of the actual operating resultsappeared as follows.
Determine the missing pieces of information below.(Round intermediate calculations and final answer to 0decimal places, e.g. 1,255.)
Planes | Taxis | Limos | |||||||
Service revenue | $ | $501,500 | $ | ||||||
Variable costs | 5,506,800 | 300,500 | |||||||
Contribution margin | 246,200 | 515,892 | |||||||
Controllable fixed costs | 1,499,800 | ||||||||
Controllable margin | 76,100 | 271,692 | |||||||
Average operating assets | 24,952,000 | 1,509,400 | |||||||
Return on investment | 13 | % | 8 | % | % | ||||
