Question

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 prepared for each operating department and the office department. The company's responsibility accounting 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 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 Budget Actual Raw materials Employee wages Dept. manager salary Supplies used Depreciation-Equip Utilities Building rent Office department costs Totals Campers Trailers Combined Campers Trailers Combined $195,500 $276,000 $ 471,500 $194,100 $274,000 468,100 314,400 98,300 122,400 188,400 10,700 14,900 159,100 $522,050 $838,250 $1,360,300 $ 528,950 $ 847,350 $1,376,300 105,200 206,000 43,500 52,700 33,800 91,000 62,000 126,500 5,800 9,500 70,750 311,200 106,800 207,600 96,200 44,300 54,000 124,800 31,400 91,000 188,500 62,400 126,000 6,500 8,700 141,50079,55079,550 5,000 6,300 70,750 10,800 15,800 4,200 6,200 The office department's annual budget and its actual costs follovw Plant manager salary Other office salaries Other office costs Totals Budget Actual $84,000 87,000 40,500 25, 000 47,100 $141,500 $159,100 17,000

Answer 1

Answer:

1

Responsibility Accounting Performance Report
Dept. Manager , Camper Department
	For the Year
	Budgeted Amount	Actual Amount	Over ( Under) Budget
Controllable Cost
Raw Materials	195500	194100	1400
Employees Wages	105200	106800	-1600
Supplied Used	33800	31400	2400
Depreciation Equipment	62000	62400	-400
Totals	396500	394700	1800

2

Responsibility Accounting Performance Report
Dept. Manager , Trailler Department
	For the Year
	Budgeted Amount	Actual Amount	Over ( Under) Budget
Controllable Cost
Raw Materials	276000	274000	2000
Employees Wages	206000	207600	-1600
Supplied Used	91000	91000	0
Depreciation Equipment	126500	126000	500
Totals	699500	698600	900

3

Responsibility Accounting Performance Report
Plant Manager , Indiana Plant
	For the Year
	Budgeted Amount	Actual Amount	Over ( Under) Budget
Controllable Cost
Dept Manager Salaries	96200	98300	-2100
Utilities	10800	10700	100
Building Rent	15800	14900	900
Other Office Salaries	40500	25000	15500
Other Office cost	17000	47100	-30100
Camper Department	396500	394700	1800
Trailer Department	699500	698600	900
Total	1276300	1289300	-13000