Managerial Accounting: WCP24 Waterways Corporation is continuing its budget preparations

Managerial Accounting 
WATERWAYS CONTINUING PROBLEM: WCP24 
(This is a continuation of the Waterways Problem from Chapters 19 through 23.) 
Waterways Corporation is continuing its budget preparations. Waterways had the following static budget and overhead costs for March. 
Waterways Corporation Waterways Corporation 
Manufacturing Overhead Budget (Static) Manufacturing Overhead Costs (Actual) 
For the Month of March For the Month of March 
Budgeted production in units 117500 Production in units 118,500 
Budgeted costs Costs 
Indirect materials 7050 Indirect materials 7,100 
Indirect labor 11750 Indirect labor 11,825 
Utilities 10575 Utilities 10,700 
Maintenance 5875 Maintenance 5,900 
Salaries 42000 Salaries 42,000 
Depreciation 16800 Depreciation 16,800 
Property taxes 2500 Property taxes 2,500 
Insurance 1200 Insurance 1,200 
Janitorial 1300 Janitorial 1,300 
Total budgeted costs 99050 Total costs $99,325 

Waterways 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 
4. 118,500 units 
5. 119,500 units 
b. Prepare a flexible budget report showing the differences (favorable and unfavorable) in manufacturing overhead costs for the month of March. 
c. Prepare a responsibility report for the manufacturing overhead for March, assuming only variable costs are controllable.
Powered by