Question
Arctica manufactures snowmobiles and ATVs. These products are made in different departments, and each department has its own manager. Each responsibility performance report includes
Arctica manufactures snowmobiles and ATVs. These products are made in different departments, and each department has its own manager. Each responsibility performance report includes only those costs that the department manager can control: direct materials, direct labor, supplies used, and utilities. Budget Actual For Year Ended December 31 Direct materials Direct labor Department manager salaries Snowmobile $ 19,610 10,500 ATV $ 27,600 Snowmobile $ 19,520 ATV $ 28,930 4,400 Supplies used Utilities 3,410 Rent 370 5,800 20,600 5,300 910 550 6,400 10,770 21,350 4,500 3,270 4,500 940 340 5,400 510 6,400 Totals $ 44,090 $ 61,360 $ 43,800 $ 62,630 Exercise 22-2 (Algo) Responsibility accounting performance report LO P1 Prepare a responsibility accounting performance report for the ATV department. (Under budget amounts should be indicated by a minus sign.) Controllable Costs Direct materials Responsibility Accounting Performance Report Manager, ATV Department For Year Ended December 31 Budgeted Over (Under) Actual Budget Direct labor Supplies used Utilities Totals
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