Question

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		$	20,100			$	28,100			$	48,200				$	20,020			$	29,480		$	49,500
Employee wages			11,000				21,100				32,100					11,320				21,900			33,220
Dept. manager salary			4,900				5,800				10,700					5,000				5,000			10,000
Supplies used			3,960				960				4,920					3,770				990			4,760
Depreciation-Equip.			6,600				13,100				19,700					6,600				13,100			19,700
Utilities			420				600				1,020					390				560			950
Rent			6,300				6,900				13,200					5,900				6,900			12,800
Totals		$	53,280			$	76,560			$	129,840				$	53,000			$	77,930		$	130,930

Prepare a responsibility accounting report for the ATV department. (Under budget amounts should be indicated by a minus sign.)

Responsibility Accounting Performance Report
Dept. Manager, ATV Department
	For the Year
	Budgeted Amount	Actual Amount	Over (Under) Budget
Controllable Costs:
Raw materials
Employee wages
Supplies used
Depreciation—Equipment
Totals	$	$	$

Answer 1

Responsibility Accounting Performance Report
Dept. Manager, ATV Department
	For the Year
	Budgeted Amount	Actual Amount	Over (Under) Budget
Controllable Costs:
Raw materials	28100	29480	1380
Employee wages	21100	21900	800
Supplies used	960	990	30
Depreciation—Equipment	13100	13100	0
Totals	63260	65470	2210