90.2K

Verified Solution

Link Copied!

Check my work Problem 22-1A Responsibility accounting performance reports; controllable and budgeted costs LO P1 Billie Whitehorse, the plant manager of Travel Free's Indiana plant, is responsible for all of that plant's costs other than her own salary. The plant has two operating departments and one service department. The camper and trailer operating departments manufacture different products and have their own managers. The office department, which Whitehorse also manages, provides services equally to the two operating departments. A budget is prepared for each operating department and the office department. The company's responsibility accounting system must assemble information to present budgeted and actual costs in performance reports for each operating departntent manager and the plant manager. Each performance report includes only those costs that a particular operating department manager can control: raw materials, wages, supplies used, and equipment depreciation. The plant manager is responsible for the department managers' salaries, utilities, building rent, office salaries other than her own, and other office costs plus all costs controlled by the two operating department managers. The annual departmental budgets and actual costs for the two operating departments follow. Raw materials Employee wages Dept. manager salary Supplies used Depreciation-Equip. Utilities Building rent Office department costs Totals Budaet Actual Campers Trailers Combined Campers Trailers Combined $ 195,900 $ 276,480 $ 472,300 $ 194,700 $274,200 $ 468,900 104,800 206,400 311,200 107.000 287,000 314,000 43.800 53.000 96,800 44.700 53.800 98.500 33,489 90.800 90,800 124,20931.700 92.289 123.900 62,000 127,000 189,000 63,000 126,500 189,500 5,000 5,400 10,400 3,600 6,500 10, 10e 6.000 9.600 15,600 5.400 9.100 14.500 70, 750 70,750 141,50075,550 75,550 151, 100 $521,650 $839,350 $1,361,000 $525,650 $844,850 $1,370,500 The office department's annual budget and its actual costs follow. Plant manager salary Other office salaries Budget Actual $ 79,000 $85.000 40,500 26,200 Check my work The office department's annual budget and its actual costs follow. Plant manager salary Other office salaries Other office costs Totals Budget Actual $ 79,000 $ 85,000 40,500 26,200 22,000 39,900 $141,500 $151, 100 Required: 1. Prepare responsibility accounting performance reports that list costs controlled by the following. In each report, include the budgeted and actual costs and show the amount that each actual cost is over or under the budgeted amount. a. Manager of the camper department b. Manager of the trailer department. c. Manager of the Indiana plant. Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Reg 1 Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 1C Prepare responsibility accounting performance reports that list costs controlled by the following. In each report, include the budgeted and actual costs and show the amount that each actual cost is over or under the budgeted amount for manager of the camper department. (Under budget amounts should be indicated by a minus sign.) Responsibility Accounting Performance Report Dept. Manager, Camper Department For the Year Budgeted Actual Over (Under) Amount Amount Budget Controllable Costs Totals $ 0 $ Reg 1A Reg 18 > Complete this question by entering your answers in the tabs below. Req 1A Red 1B Req 1C Prepare responsibility accounting performance reports that list costs controlled by the following. In each report, include the budgeted and actual costs and show the amount that each actual cost is over or under the budgeted amount for manager of the trailer department. (Under budget amounts should be indicated by a minus sign.) Responsibility Accounting Performance Report Dept. Manager, Trailer Department For the Year Budgeted Actual Over (Under) Amount Amount Budget Controllable Costs Totals 0 $ 0 $ Complete this question by entering your answers in the tabs below. Req 1A Req 18 Regic Prepare responsibility accounting performance reports that list costs controlled by the following. In each report, include the budgeted and actual costs and show the amount that each actual cost is over or under the budgeted amount for manager of the Indiana plant. (Under budget amounts should be indicated by a minus sign.) Responsibility Accounting Performance Report Plant Manager, Indiana Plant For the Year Budgeted Actual Over (Under) Amount Amount Budget Controllable Costs Totals

Answer & Explanation Solved by verified expert

See Answer