In the Assembly Department of Hannon Company, budgeted and actual manufacturing overhead costs for the month of April 2014 were as follows. All costs are controllable by the department manager.
Prepare a responsibility report for April for the cost center.
Budget Actual
Indirect materials $15,886 $15,314
Indirect labor 21,091 21,707
Utilities 10,788 11,568
Supervision 5,530 5,530

Pear co.’s income statement for the year ended december 31, as prepared by pear’s controller, reported income before taxes of $125,000. the auditor questioned the following amounts that had been included in income before taxes: equity in earnings of cinn co. $ 40,000 dividends received from cinn 8,000 adjustments to profits of prior years for arithmetical errors in depreciation (35,000) pear owns 40% of cinn’s common stock, and no acquisition differentials are relevant. pear’s december 31 income statement should report income before taxes of