Problem:
The Mixing Department manager of Malone Company is able to control all overhead costs except rent, property taxes, and salaries. Budgeted monthly overhead costs for the Mixing Department, in alphabetical order, are:
|
Indirect labor
|
$12,000
|
Property taxes
|
$1,000
|
|
Indirect materials
|
7,700
|
Rent
|
1,800
|
|
Lubricants
|
1,675
|
Salaries
|
10,000
|
|
Maintenance
|
3,500
|
Utilities
|
5,000
|
Actual costs incurred for January 2014 are indirect labor $12,250; indirect materials $10,200; lubricants $1,650; maintenance $3,500; property taxes $1,100; rent $1,800; salaries $10,000; and utilities $6,400.
Required:
- Prepare a responsibility report for January 2014.
-
What would be the likely result of management's analysis of the report?
Note: Please show the work not just the answer.