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 RAM materials Employee wages Dept. manager salary Supplies used Depreciation Equip. Utilities Building rent ottice department costs Total Budget Actual Campers Trailers Combined Carpers TrallersCombined $195,200 $276,000 $ 471,200 $199, 900 274,400 469,300 105,100 205,800 311,200 106, 600 207,000 313,600 43,200 53, 100 96,300 44,400 53,300 97.700 33,800 91,800 125,600 32,600 91,600 124, 200 61,000 126.000 187.000 61, 800 126,500 188,300 4.400 6.000 10.400 3,300 5,300 8,600 5,700 9.500 15,500 5,800 3,600 14, 400 66.750 66.750 133,500 01.550 €1.550 163, 100 $515,450 $835,250 $1,350, 7003530,950 $848,250 $1,379,200 The office department's annual budget and its actual costs follow Plantager salary Other office salaries Other Office Coats Total Budget Actual $ 80.000 $102,000 12,500 26.400 3,000 34,700 $133,500 $163, 100 Required: 1. Prepare responsibility accounting performance reports that list costs controlled by the following. In each report, include the budgeted and actual costs and show the amount that each actual cost is over or under the budgeted amount .. Manager of the camper department b. Manager of the trailer department c. Manager of the Indiana plant Complete this question by entering your answers in the tabs below.

Answer 1

Ans 1.

a)

Responsibility Accounting Performance Report
Dept Manager, Camper Department
		For the Year
		Budgeted Amount	Actual Amount	Over (Under) Budgeted
Controllable Costs
Raw Materials		$195,200.00	$194,900.00	$   (300.00)
Employee Wages		$105,400.00	$106,600.00	$ 1,200.00
Supplies Used		$ 33,800.00	$ 32,600.00	$(1,200.00)
Depreciation - Equipment		$ 61,000.00	$ 61,800.00	$    800.00
Total		$395,400.00	$395,900.00	$    500.00

b)

Responsibility Accounting Performance Report
Dept Manager, Trailer Department
		For the Year
		Budgeted Amount	Actual Amount	Over (Under) Budgeted
Controllable Costs
Raw Materials		$   276,000.00	$   274,400.00	$    (1,600.00)
Employee Wages		$   205,800.00	$   207,000.00	$     1,200.00
Supplies Used		$     91,800.00	$     91,600.00	$      (200.00)
Depreciation - Equipment		$   126,000.00	$   126,500.00	$       500.00
Total		$   699,600.00	$   699,500.00	$      (100.00)

c)

Responsibility Accounting Performance Report
Plant Manager, Indiana Plant
		For the Year
		Budgeted Amount	Actual Amount	Over (Under) Budgeted
Controllable Costs
Dept. Manager Salaries		$     96,300.00	$     97,700.00	$     1,400.00
Utilities		$     10,400.00	$       8,600.00	$    (1,800.00)
Building Rent		$     15,500.00	$     14,400.00	$    (1,100.00)
Other Office Salaries		$     42,500.00	$     26,400.00	$ (16,100.00)
Other Office Costs		$      3,000.00	$     34,700.00	$   31,700.00
Camper Department		$   395,400.00	$   395,900.00	$       500.00
Trailer Department		$   699,600.00	$   699,500.00	$      (100.00)
Total		$1,262,700.00	$1,277,200.00	$   14,500.00