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9 August, 00:11

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.

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Answers (1)
  1. 9 August, 04:06
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    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
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