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. Prepare a responsibility accounting report for the ATV department.

Exercise 22-2 Responsibility accounting report-cost center LO P1 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 $20,700 11,600 5,500 4,620 7,200 480 6,900 $57,000 Budget ATV $28,700 21,700 6,400 1,020 13,700 660 7,500 $ 79,680 Combined $ 49,400 33,300 11,900 5,640 20,900 1,140 14,400 $ 136,680 Snowmobile $20,620 11,980 5,600 4,370 7,200 450 6,500 $56, 720 Actual ATV Combined $30, 140 $ 50,760 22,560 34,540 5,600 11,200 1,050 5, 420 13,700 20,900 620 1,070 7,500 14,000 $81,170 $137,890 Prepare a responsibility accounting report for the ATV department. (Under budget amounts should be indicated by a minus sign.) Responsibility Accounting Performance Report Dept. Manager, ATV Department For the Year Budgeted Amount Over (Under) Actual Amount Budget Controllable Costs: Raw materials Employee wages Supplies used Depreciation Equipment Totals $ $ 0 S 0 0