Question

In the Assembly Department of Concord Company, budgeted and actual manufacturing overhead costs for the month of April 2020 were as follows. Budget Actual Indirect materials $14,200 $13,700 Indirect labor 19,100 19,900 Utilities 11,400 12,100 Supervision 4,600 4,600 All costs are controllable by the department manager. Prepare a responsibility report for April for the cost center.

Answer 1

Answer and Explanation:

The preparation of responsibility report for April for the cost center is shown below:-

Concord Company,

Assembly Department

Manufacturing Overhead Cost Responsibility Report

For the Month Ended April

Controllable Cost Budget Actual Difference Remark

Indirect materials $14,200 $13,700 $500 Favorable

Indirect Labor $19,100 $19,900 -$800 Unfavorable

Utilities $11,400 $12,100 -$700 Unfavorable

Supervision $4,600 $4,600 0 None

Total $49,300 $50,300 -$1,000 Unfavorable