Reference no: EM132543084

The Mixing Department manager of Crede 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 93 1,000

Indirect materials 7,500

Rent 1,800

Lubricants 1,700

Salaries 10,000

Maintenance 3,500

Utilities 5,000

Actual costs incurred for January 2010 are indirect labor $12,200;

indirect materials $10,200;

lubricants $1,650;

maintenance $3,500;

property taxes $1,100;

rent $1,800;

salaries $10,000; and

utilities $6,500.

Instructions

Question (a) Prepare a responsibility report for January 2010.

Question (b) What would be the likely result of management's analysis of the report?