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WCP24 Waterways Corporation is continuing its budget preparations. Waterways had the following static budget and overhead costs for March 2014….

WCP24 Waterways Corporation is continuing its budget preparations. Waterways had the following static budget and overhead costs for March 2014. WATERWAYS CORPORATION WATERWAYS CORPORATION Manufacturing Overhead Budget Manufacturing Overhead Costs (Actual) (Static) For the Month of March 2014 For the Month of March 2014 Budgeted production in units 117,500 Production in units 118,500 Budgeted costs Costs Indirect materials $ 5,875 Indirect materials $ 5,910 Indirect labor 14,100 Indirect labor 14,195 Utilities 11,750 Utilities 11,880 Maintenance 8,225 Maintenance 8,275 Salaries 42,000 Salaries 42,000 Depreciation 16,800 Depreciation 16,800 Property taxes 3,000 Property taxes 3,000 Insurance 1,200 Insurance 1,200 Janitorial 1,500 Janitorial 1,500 Total budgeted costs $104,450 Total costs $104,760 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.



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