5 . Billie Whitehorse, the plant manager of Travel Frees Indiana plant, is responsible for all of that plants costs other than her own salary.
5. Billie Whitehorse, the plant manager of Travel Frees Indiana plant, is responsible for all of that plants 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 companys 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 |
| | Campers | Trailers | Combined | Campers | Trailers | Combined |
| Raw materials | $ | 195,900 | | $ | 277,400 | | $ | 473,300 | | $ | 194,600 | | $ | 274,200 | | $ | 468,800 | |
| Employee wages | | 104,950 | | | 206,200 | | | 311,150 | | | 107,600 | | | 207,200 | | | 314,800 | |
| Dept. manager salary | | 43,300 | | | 52,900 | | | 96,200 | | | 44,800 | | | 53,100 | | | 97,900 | |
| Supplies used | | 34,600 | | | 91,600 | | | 126,200 | | | 32,600 | | | 91,300 | | | 123,900 | |
| DepreciationEquip. | | 61,000 | | | 126,000 | | | 187,000 | | | 62,400 | | | 126,500 | | | 188,900 | |
| Utilities | | 5,400 | | | 5,200 | | | 10,600 | | | 4,500 | | | 6,800 | | | 11,300 | |
| Building rent | | 6,000 | | | 9,500 | | | 15,500 | | | 5,300 | | | 8,900 | | | 14,200 | |
| Office department costs | | 71,750 | | | 71,750 | | | 143,500 | | | 67,550 | | | 67,550 | | | 135,100 | |
| Totals | $ | 522,900 | | $ | 840,550 | | $ | 1,363,450 | | $ | 519,350 | | $ | 835,550 | | $ | 1,354,900 | |
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The office departments annual budget and its actual costs follow.
| | Budget | Actual |
| Plant manager salary | $ | 85,000 | | $ | 87,000 | |
| Other office salaries | | 30,500 | | | 26,300 | |
| Other office costs | | 28,000 | | | 21,800 | |
| Totals | $ | 143,500 | | $ | 135,100 | |
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In each report, include the budgeted and actual costs and show the amount that each actual cost is over or under the budgeted amount.
Prepare responsibility accounting performance reports that list controllable costs. In each report, include the budgeted and actual costs and show the amount that each actual cost is over or under the budgeted amount for manager of the Camper department. (Under budget amounts should be indicated by a minus sign.)
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| | | Responsibility Accounting Performance Report | | Dept. Manager, Camper Department | | | For the Year | | Budgeted Amount | Actual Amount | Over (Under) Budget | | Controllable Costs | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Totals | $0 | $0 | $0 | |
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| | | Responsibility Accounting Performance Report | | Dept. Manager, Trailer Department | | | For the Year | | Budgeted Amount | Actual Amount | Over (Under) Budget | | Controllable Costs | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Totals | $0 | $0 | $0 | |
| Responsibility Accounting Performance Report | | Plant Manager, Indiana Plant | | | For the Year | | Budgeted Amount | Actual Amount | Over (Under) Budget | | Controllable Costs | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Totals | $0 | $0 | $0 | |
