Arctica manufactures snowmobiles and ATVs. These products are made in different departments, and each department has its own manager. Each responsibility performance report only includes those costs that the particular department manager can control: raw materials, wages, supplies used, and equipment depreciation.
Advertising department expenses of $25,000 and purchasing department expenses of $56,200 of Cozy Bookstore are allocated to operating departments on the basis of dollar sales and purchase orders, respectively. Information about the allocation bases for the three operating departments follows. Department Books Magazines Newspapers Total Sales $ 186,200 95,000 98,800 $ 380,000 Purchase Orders 546 364 390 1,300 Complete the following table by allocating the expenses of the two service departments (advertising and purchasing) to the three operating departments. Complete this question by entering your answers in the tabs below. Allocation of Exp Alloc of Serv Dept Complete the following table by allocating the expenses of the two service departments (advertising and purchasing) to the three operating departments. Advertising Allocation Base Cost to be Allocated Allocated Cost Percent of Allocation Base Numerator Denominator % of Total Department Books Magazines Newspapers Totals 0 Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Numerator Denominator % of Total 01 Purchasing Department Books Magazines I Newspapers Totals I | 0 Allocation of Exp Alloc of Serv Dept> Advertising department expenses of $25,000 and purchasing department expenses of $56,200 of Cozy Bookstore are allocated to operating departments on the basis of dollar sales and purchase orders, respectively. Information about the allocation bases for the three operating departments follows. Department Books Magazines Newspapers Total Sales $ 186,200 95,000 98,800 $ 380,000 Purchase Orders 546 364 390 1,300 Complete the following table by allocating the expenses of the two service departments (advertising and purchasing) to the three operating departments. Complete this question by entering your answers in the tabs below. Allocation of Alloc of Serv Dept Complete the spreadsheet by allocating the expenses of the two service departments (advertising and purchasing) to the three operating departments. (Amounts to be deducted should be indicated with minus sign.)... COZY BOOKSTORE Departmental Expense Allocation Spreadsheet Expense Totals Advertising Purchasing Books $ 624,000 $ 25,000 $ 56,200 $ 168,500 Magazines Newspapers $ 124,800 $ 249,500 Total department expenses Service Dept. Expenses Advertising Dept. Purchasing Dept. Total expenses allocated $ 624,000 $ 25,000 $ 56,200 $ 168,500 $ 124,800 $ 249,500 Arctica manufactures snowmobiles and ATVs. These products are made in different departments, and each department has its own manager. Each responsibility performance report only includes those costs that the particular department manager can control: raw materials, wages, supplies used, and equipment depreciation. Raw materials Employee wages Dept. manager salary Supplies used Depreciation-Equip. Utilities Rent Totals Snowmobile $21,080 12,000 5,900 5,060 7,600 520 7,300 $59,460 Budget ATV $29,100 22,100 6,800 2,500 14,100 700 7,900 $83,200 Combined $ 50,180 34,100 12,700 7,560 21,700 1,220 15,200 $142,660 Snowmobile $21,020 12,420 6,000 4,770 7,600 490 6,900 $59,200 Actual ATV Combined $30,420 $ 51,440 22,840 35,260 6,000 12,000 2,520 7,290 14,100 21,700 660 1,150 7,900 14,800 $84,440 $143,640 Prepare a responsibility accounting report for the snowmobile department. (Under budget amounts should be indicated by a minus sign.) Responsibility Accounting Performance Report Dept. Manager, Snowmobile Department For the Year Budgeted Actual Amount Over (Under) Amount Budget Controllable Costs Raw materials Employee wages Supplies used Depreciation Equipment Totals
