2. Responsibility accounting for cost centers

A cost center is responsible for controlling and reporting its costs. The manager of the cost center also has the authority to control the necessary costs. A budget performance report is an example of a report generated by a cost center.

The Cooper Company has two plants, known as West Plant and East Plant. Each plant has two departments, Processing Department and Finishing Department. Both departments are cost centers. The following budget performance reports have been prepared for the two departments at West Plant for the month of April.

Finishing Department

Budget Performance Report

Supervisor, Finishing Department-West Plant

For the Month Ending April 30,2013

	Budget	Actual	Over Budget	Under Budget
Factory wages	$ 250,130	$235,000	$0	$15,130
Utilities	50,260	49,325	0	935
Maintenance	82,390	80,630	0	01,760
Supervisory salaries	43,325	43,325	0	0
Materials	18,650	21,300	2,650	0
Depreciation of plant and equipment	27,600	27,600	0	0
	$472,355	$457,180	$2,650	$17,825

Processing Department

Budget Performance Report

Supervisor, Finishing Department-West Plant

For the Month Ending April 30,2013

	Budget	Actual	Over Budget	Under Budget
Factory wages	$ 59,750	$62,575	$2,825	$0
Utilities	8,560	9,025	465	0
Maintenance	15,390	15,630	240	0
Supervisory salaries	35,325	35,325	0	0
Materials	22,650	21,800	0	850
Depreciation of plant and equipment	9,600	9,600	0	0
	$151,275	$153,955	$3,530	$850

A. Please complete the following:

Using the information given, prepare a budget performance report for west Plant for the month of April.

Budget Performance Report

Manager, West Plant

For the Month Ending April 30,2013

	Budget	Actual	Over Budget	Under Budget
Processing Department
Finishing Department