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24-1
SOLUTION
Chapter 24 Waterways Continuing Problem
WCP 24
(a)
Waterways Corporation
Manufacturing Overhead Flexible Budget
For the Month of March
Production in units
115,500
116,500
117,500
118,500
119,500
Variable costs
Indirect materials($.06/unit a)
$ 6,930
$ 6,990
$ 7,050
$ 7,110
$ 7,170
Indirect labor ($.10/unit b)
11,550
11,650
11,750
11,850
11,950
Unit costs are based on the static budget costs.
a. $7,050 / 117,500 units = $0.06 / unit
24-2
(b)
Waterways Corporation
Manufacturing Overhead Flexible Budget Report
For the Month of March
Budget
Actual
Difference
Favorable
Production in units
118,500
118,500
Unfavorable
Variable costs
Indirect materials
$ 7,110
$ 7,100
$ 10 F
Indirect labor
11,850
11,825
25 F
Utilities
10,665
10,700
35 U
(c)
Waterways Corporation
Responsibility Report
Manufacturing Overhead
For the Month of March
Controllable Cost
Budget
Actual
Difference
Favorable
Unfavorable
Indirect materials
$ 7,110
$ 7,100
$ 10 F
