Question

Exercise 22-13 (Part Level Submission) 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 an Finishing. Budget and actual manufacturing cost data for July 2017 are as follows. Finishing Department-Dallas: direct materials $42,500 actual, $44,000 budget; direct labor $83,400 actual, $82,000 budget; manufacturing overhead $51,000 actual, $49,200 budget. Machining Department-Dallas: total manufacturing costs $220,000 actual, $219,000 budget. Atlanta Plant: total manufacturing costs $424,000 actual, $420,000 budget. Tucson Plant: total manufacturing costs $494,200 actual, $496,500 budget. The Dallas plant manager's office costs were $95,000 actual and $92,000 budget. The vice president of production's office costs were $132,000 actual and $130,000 budget. Office costs are not allocated to departments and plants. v (a) Prepare the reports in a responsibility system for: The Finishing Department-Dallas. To Dallas Department Manager-Finishing Month: July Favorable Unfavorable Neither Favorable nor Unfavorable Controllable Costs: Budget Actual $ $ + Total .

Answer 1

Controllable costs	Budget	Actual		Favourable Unfavourable Neither Favourable nor UnFavourable
Direct Materials	$ 44,000	$ 42,500	$ 1,500	F
Direct Labor	$ 82,000	$ 83,400	$ 1,400	U
Manufacturing overhead	$ 49,200	$ 51,000	$ 1,800	U
Total	$ 175,200	$ 176,900	$ 1,700	U