Question

Exercise 10-13 (Video) 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 2020 are as follows. Finishing Department-Dallas: direct materials $42,550 actual, $44,170 budget; direct labor $84,700 actual, $84,040 budget; manufacturing overhead $51,980 actual, $49,810 budget. Machining Department Dallas: total manufacturing costs $224,070 actual, $216,310 budget. Atlanta Plant: total manufacturing costs $424,370 actual, $424,610 budget. Tucson Plant: total manufacturing costs $493,790 actual, $495,580 budget The Dallas plant manager's office costs were $97,410 actual and $94.250 budget. The vice president of production's office costs were $135,640 actual and $130,980 budget. Office costs are not allocated to departments and plants. Prepare the reports in a responsibility system for: The Finishing Department-Dallas.

Answer 1

To The Finishing Department-Dallas: Month July
Controllable costs	Budget	Actual	Variance	Fav./Unfav./None
Finishing :
direct materials	44170	42550	1620	Fav.
direct labor	84040	84700	660	Unfav.
manufacturing overhead	49810	51980	2170	Unfav.
Total Manufacturing Costs	178020	179230	1210	Unfav.
To Assembly Plant Manager-Dallas: Month July
Controllable costs	Budget	Actual	Variance	Fav./Unfav./None
Dallas office	94250	97410	3160	Unfav.
Departments:
Machining:
Dallas	216310	224670	8360	Unfav.
Atlanta	424610	424370	240	Fav.
Tucson	495580	493790	1790	Fav.
Total	1136500	1142830	6330	Unfav.
Finishing :
direct materials	44170	42550	1620	Fav.
direct labor	84040	84700	660	Unfav.
manufacturing overhead	49810	51980	2170	Unfav.
Total Manufacturing Costs	178020	179230	1210	Unfav.
To Vice President-Production: Month July
Controllable costs	Budget	Actual	Variance	Fav./Unfav./None
VP- Production	94250	97410	3160	Unfav.
Assembly plants:
Dallas	216310	224670	8360	Unfav.
Atlanta	424610	424370	240	Fav.
Tucson	495580	493790	1790	Fav.
Total	1136500	1142830	6330	Unfav.