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Determine which items would be controllable by Fred Bedner, the production manager

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BYP10-6 The manufacturing overhead budget for Fleming Company contains the following items…. 1 answer below » BYP10-6 The manufacturing overhead budget for Fleming Company contains the following items. View complete question » Variable costs Fixed costs Indirect materials $22,000 Supervision $17,000 Indirect labor 12,000 Inspection costs 1,000 Maintenance expense 10,000 Insurance expense 2,000 Manufacturing supplies 6,000 Depreciation 15,000 Total variable $50,000 Total fixed $35,000 BYP10-6 The manufacturing overhead budget for Fleming Company contains the following items. Variable costs Fixed costs Indirect materials $22,000 Supervision $17,000 Indirect labor 12,000 Inspection costs 1,000 Maintenance expense 10,000 Insurance expense 2,000 Manufacturing supplies 6,000 Depreciation 15,000 Total variable $50,000 Total fixed $35,000 The budget was based on an estimated 2,000 units being produced. During the past month, 1,500 units were produced, and the following costs  incurred. Variable costs Fixed costs Indirect materials $22,500 Supervision $18,400 Indirect labor 13,500 Inspection costs 1,200 Maintenance expense 8,200 Insurance expense 2,200 Manufacturing supplies 5,000 Depreciation 14,700 Total variable $49,200 Total fixed $36,500 Instructions (a)  Determine which items would be controllable by Fred Bedner, the production manager. (b)  How much should have been spent during the month for the manufacture of the 1,500 units? (c)   Prepare a flexible manufacturing overhead budget report for Mr. Bedner. (d)  Prepare a responsibility report. Include only the costs that would have been controllable by Mr. Bedner. Assume that the supervision cost above includes Mr. Bedner’s salary of $10,000, both at budget and actual. In an attached memo, describe clearly for Mr. Bedner the areas in which his performance needs to be improved. View less » Nov 30 2015 04:46 PM


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