Question

Check my work 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 prepeared for each operating department and the office department. The company's responsibility accounting system must essemble information to present budgeted and actual costs in performance reports for each operating depertment 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 ok Budget Trailers $ 195,600 276,200 205,600 52,600 9e,sp0 126,000 5,600 9,200 70,750 Actual Trailers Combined Campers Campers 471,800 194,300$274,000s 468, 100 107,200 44,700 32,000 6e,600 3,600 6,000 79,55e Conbined Raw materials Employee wages Dept. manager salary Supplies used Depreciation-Equip. utilities Building rent office department costs nt 184,450 310,050 96,200 124,400 187,000 10,200 15,500 141,500 $ 519,900 836,750 1,356,650 $ 527,950 $ 848,05e $1,176,000 315,400 98,600 123,300 187,100 8,900 15,300 159,100 208,200 53,900 91,100 126,500 5, 300 43,600 33,600 61,000 4,600 6,300 70,75e ences 9,300 79,550 Totals The office department's annual budget and its actual costs follow Actual 85,000 $100,000 32,500 Budget Plant manager salary other office salaries other office costs 25,900 31,200 24,000 $141,500 $159,100 Totals Required: 1. Prepare responsibility accounting performance reports thet 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. Reg 1C Req 1A Req 1B 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 Actual Amount Over (Under) Budget Budgeted Amount Controllable Costs $ Totals Reg 1C) Reg 18

Answer 1

1.

Prepare responsibility accounting performance reports as follows:

a

Manager of the camper department:

$uEhRkfDY7JoAAAAASUVORK5CYII=$

Thus, the camper department is under-budgeted by $ 550.

b.

Manager of the trailer department:

$wdbWSHl5GNgvQAAAABJRU5ErkJggg==$

Thus, the camper department is over-budgeted by $ 1,400.

c.

Manager of the Indiana plant:

$AMnWlvL5nsYAAAAASUVORK5CYII=$

Thus, the Indiana plant is over-budgeted by $ 4,150.