In the Assembly Department of Hannon Company, budgeted and actual manufacturing overhead costs for the month of April 2020 were as follows.

Budget Actual

Indirect materials $14,000 $13,500

Indirect labor 19,000 19,500

Utilities 10,000 10,500

Supervision 4,000 4,000

All costs are controllable by the department manager.

Required:

1. Prepare a responsibility report for April for the cost center.

Question

Noel

Business

24 May, 17:30

In the Assembly Department of Hannon Company, budgeted and actual manufacturing overhead costs for the month of April 2020 were as follows.

Budget Actual

Indirect materials $14,000 $13,500

Indirect labor 19,000 19,500

Utilities 10,000 10,500

Supervision 4,000 4,000

All costs are controllable by the department manager.

Required:

1. Prepare a responsibility report for April for the cost center.

+4

Answers (1)

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Azaria Baxter · Answer 1

Answer and Explanation:

Assembly Department of Hannon Company, budgeted and actual manufacturing overhead costs for the month of April 2020

Budget Actual Difference

Indirect materials $14,000 $13,500 $500 Favorable

Indirect labor 19,000 19,500 500

Unfavourable

Utilities 10,000 10,500 500 Unfavourable

Supervision 4,000 4,000 0 Neither Favorable nor Unfavourable

Total 47,000 47,500 Unfavourable