Arctica manufactures snowmobiles and ATVs. These products are made in different departments, and each department...
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Accounting
Arctica manufactures snowmobiles and ATVs. These products are made in different departments, and each department has its own manager. Each responsibility performance report only includes those costs that the particular department manager can control: raw materials, wages, supplies used, and equipment depreciation.
Budget
Actual
Snowmobile
ATV
Combined
Snowmobile
ATV
Combined
Raw materials
$
21,190
$
29,200
$
50,390
$
21,120
$
30,520
$
51,640
Employee wages
12,100
22,200
34,300
12,530
22,940
35,470
Dept. manager salary
6,000
6,900
12,900
6,100
6,100
12,200
Supplies used
5,170
2,600
7,770
4,870
2,620
7,490
Depreciation-Equip.
7,700
14,200
21,900
7,700
14,200
21,900
Utilities
530
710
1,240
500
670
1,170
Rent
7,400
8,000
15,400
7,000
8,000
15,000
Totals
$
60,090
$
83,810
$
143,900
$
59,820
$
85,050
$
144,870
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