Question

Fey Company’s organization chart includes the president; the vice president of production; three assembly plants—Dallas, Atlanta, and Tucson; and two departments within each plant—Machining and Finishing. Budget and actual manufacturing cost data for July 2017 are as follows.

Finishing Department—Dallas: direct materials $42,040 actual, $44,840 budget; direct labor $84,880 actual, $81,840 budget; manufacturing overhead $53,660 actual, $51,910 budget.

Machining Department—Dallas: total manufacturing costs $220,090 actual, $216,510 budget.

Atlanta Plant: total manufacturing costs $423,760 actual, $421,070 budget.

Tucson Plant: total manufacturing costs $493,600 actual, $496,060 budget.

The Dallas plant manager’s office costs were $96,550 actual and $92,770 budget. The vice president of production’s office costs were $132,700 actual and $130,320 budget. Office costs are not allocated to departments and plants.

Prepare the reports in a responsibility system for: The plant manager—Dallas.

Answer 1

Answer Preparation of reports in a responsibility system for: The Plant Manager - Dallas. To Assembly Plant Manager - Dallas Controllable Costs: Month: July Favorable (F) Unfavorable (0) Budget Actual Neither Favorable non Unfavorable (N) $92,770 $96,550 $3,7800 Dallas Office Departments: Machining Finishing V $216,510 $178,590 $487,870 $220,090 $180,580 $497,220 $3,580 $1,990 $9,350 Total U Explanations Preparation of reports in a responsibility system for: The Finishing Department - Dallas. To Dallas Department Manager - Finishing Controllable Costs: Month: July Favorable (F) Unfavorable (U) Budget Actual Neither Favorable nor Unfavorable (N) $44,840 $42,040 $2,800 F $81,840 $84,880 $3,040 $51,910 $53,660 $1,750 0 $178,590 $180,580 $1,990 U Direct Materials Direct Labor Manufacturing Overhead Total