Assignment: JTL MANUFACTURING
JTL MANUFACTURING Corporation is continuing its budget preparations. JTL MANUFACTURING had the following static budget and overhead costs for March 2014.
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Manufacturing Overhead Budget
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Manufacturing Overhead Costs (Actual)
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(Static) For the Month of March 2014
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For the Month of March 2014
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Budgeted production in units
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117,500
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Production in units
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118,500
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Budgeted costs
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Costs
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Indirect materials
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$5,875
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Indirect materials
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$5,910
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Indirect labor
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14,100
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Indirect labor
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14,195
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Utilities
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11,750
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Utilities
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11,880
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Maintenance
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8,225
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Maintenance
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8,275
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Salaries
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42,000
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Salaries
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42,000
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Depreciation
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16,800
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Depreciation
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16,800
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Property taxes
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3,000
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Property taxes
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3,000
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Insurance
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1,200
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Insurance
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1,200
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Janitorial
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1,500
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Janitorial
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1,500
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Total budgeted costs
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$104,450
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Total costs
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$104,760
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JTL MANUFACTURING produced 118,500 units in March rather than the budgeted number of units.
Instructions
(a) Prepare a flexible overhead budget based on the following amounts produced.
(1) 115,500 units
(2) 116,500 units
(3) 117,500 units
(b) Prepare a flexible budget report showing the differences (favorable and unfavorable) in manufacturing overhead costs for the month of March.