B&L Landscapes, Inc. Mini Practice Part 5 Bill Graham and Larry Miller incorporated B&L Landscapes, Inc. on July 1, 2014. The business consists of lawn care and sprinkler system installations. In addition, they also sell two types of fertilizer. During 2015, B&L Landscapes, Inc. acquired a 30% interest in Crestline Pipe. The president of Crestline wants to develop a management report to evaluate Manufacturing Overhead costs. Bill and Larry want to help and have volunteered your services to provide some managerial reporting for Crestline. Crestline Pipe distributes high-quality PVC pipe and has the following information for the month of March, 2015 Crestline Pipe Crestline Pipe Manufacturing Overhead Budget (Static) Manufacturing Overhead Costs (Actual) For the Month of March, 2015 For the Month of March, 2015 Budgeted production in LF 117,500 Actual production in LF 118,500 Budgeted costs Actual costs Indirect materials ($0.30/DLH) $ 7,050 Indirect materials $ 7,100 Indirect labor ($0.50/DLH) 11,750 Indirect labor 11,825 Utilities ($0.45/DLH) 10,575 Utilities 10,700 Maintenance ($0.25/DLH) 5,875 Maintenance 5,900 Salaries 42,000 Salaries 42,000 Depreciation 16,800 Depreciation 16,800 Property taxes 2,500 Property taxes 2,500 Insurance 1,200 Insurance 1,200 Janitorial 1,300 Janitorial 1,300 Total budgeted costs $99,050 Total costs $99,325 Crestline Pipe had the following static budget and overhead costs for March. Manufacturing overhead is budgeted based on direct labor hours (DLH). Direct labor is budgeted at 12 minutes per linear foot (LF). Instructions: Prepare a flexible manufacturing overhead budget based on the following amounts produced. 115,500 LF 116,500 LF 117,500 LF 118,500 LF 119,500 LF Prepare a flexible budget report showing the differences (favorable and unfavorable) in manufacturing overhead costs for the month of March. Include your analysis of what variances should be investigated further. Prepare a responsibility report for the manufacturing overhead for March, assuming only variable costs are controllable. Provide a brief evaluation of how this information could be used to measure the manufacturing manager's performance.