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Waterways Corporation is continuing its budget preparations. Waterways had the following static budget and actual overhead costs for March. WATERWAYS CORPORATION Manufacturing Overhead Budget (Static) For the Month of March Budgeted production in units 114,000 Budgeted costs Indirect materials $5.700 Indirect labor 13.680 Utilities 11.400 Maintenance 6,840 Salaries 45,500 Depreciation 15.900 Property taxes 3.000 Insurance 1,100 Janitorial 1.700 Total budgeted costs $104.820 WATERWAYS CORPORATION Manufacturing Overhead Costs (Actual) For the Month of March Production in units 115.000 Costs Indirect materials $5.735 Indirect labor 13.773 Utilities 11,530 Maintenance 6,878 Salaries 45,500 Depreciation 15.900 Property taxes 3,000 Insurance 1,100 Janitorial 1,700 Total costs $105,116 Waterways produced 115,000 units in March rather than the budgeted number of units. Prepare a flexible overhead budget based on the following amounts produced. (Hint: Indirect materials, indirect labor, utilitites, and maintenance are variable costs. The other budgeted costs are fixed costs.) (Round unit costs to 2 decimal places, e.g. 2.25. List varlable costs before fixed costs.) (1) 112.000 units (2) 113.000 units (3) 114.000 units (4) 115.000 units (5) 116,000 units Prepare a flexible budget report showing the differences (favorable and unfavorable) in manufacturing overhead costs for the month of March. (List varble costs before fixed costs.) WATERWAYS CORPORATION Manufacturing Overhead Flexible Budget Report For the Month of March Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual WATERWAYS CORPORATION Manufacturing Overhead Flexible Budget For the Month of March Prepare a responsibility report for the manufacturing overhead for March, assuming only variable costs are controllable. WATERWAYS CORPORATION Responsibility Report Manufacturing Overhead For the Month of March Favorable Unfavorable Neither Favorable nor Unfavorable Controllable Cost Budget Actual

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