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Lowell Flexible Budget

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Lowell Company’s manufacturing overhead budget for the first quarter of 2014
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 ins.   8,000
Maintenance   6,000 Maintenance   5,000

Actual variable costs were indirect materials $13,900, indirect labor $9,500, utilities
$8,700, and maintenance $5,000. Actual fixed costs equaled budgeted costs except for
property taxes and insurance, which were $8,400. 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.
(b) Prepare a responsibility report for the first quarter

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