Question

Problem 22.1A Responsibility accounting performance reports; controllable and budgeted costs LO P1 Billie Whitehorse, the plant manager of Travel Free's Indiane 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 comper 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 occounting system must assemble information to present budgeted and actual costs in performance reports for each operating department manager and the plant manager. Each performance report includes only those costs that a particular operating department manager con control: raw materials, wages, supplies used, ond equipment depreciation. The plant manager is responsible for the department managers' salaries, utilities, building rent, ofice 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 CAPE Trailers Combined Campers Trailers Employee ages 314,200 office department costs The office department's annual budget and its actual costs follow other office salaries Required 1. Prepare responsibility accounting performance reports that list costs controlled by the following a. Manager of the Camper department b. Manager of the Trailer department Manager of the Indiana plant In each report, include the budgeted and actual costs and show the amount that each actuel cost is over or under the budgeted amount Complete this question by entering your answers in the tabs below. Reg 10 Regic Prepare responsibility accounting performance reports that est controllable costs. 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 Carper department. Under budget amounts should be indicated by a minus sign) y Accounting Performance Raport Dect Manage Camper Department For year Rag 13 >

Answer 1

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a.
	For the Year
	Budgeted	Actual	Over (Under)
	Amount	Amount	Budget
Controllable Costs:
Raw materials	$            195,400	$       195,100	$                   (300)
Employee wages	$            105,700	$       107,600	$                  1,900
Supplies used	$              33,600	$         32,000	$                (1,600)
Depreciation—Equipment	$              61,500	$         60,600	$                   (900)
Totals	$            396,200	$       395,300	$                   (900)
b.
	For the Year
	Budgeted	Actual	Over (Under)
	Amount	Amount	Budget
Controllable Costs
Raw materials	$            275,800	$       274,400	$                (1,400)
Employee wages	$            205,400	$       206,600	$                  1,200
Supplies used	$              91,800	$         91,300	$                   (500)
Depreciation—Equipment	$            126,000	$       125,500	$                   (500)
Totals	$            699,000	$       697,800	$                (1,200)
c.
	For the Year
	Budgeted	Actual	Over (Under)
	Amount	Amount	Budget
Controllable Costs
Dept. manager salaries	$              96,200	$         97,500	$                  1,300
Utilities	$                 8,800	$         10,100	$                  1,300
Building rent	$              15,500	$         14,000	$                (1,500)
Other office salaries	$              46,500	$         26,900	$             (19,600)
Other office costs	$                 1,000	$         46,200	$                45,200
Camper department	$            396,200	$       395,300	$                   (900)
Trailer department	$            699,000	$       697,800	$                (1,200)
Total	$        1,263,200	$   1,287,800	$                24,600