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.

For Year Ended December 31	Budget		Actual
	Snowmobile	ATV	Snowmobile	ATV
Direct materials	$ 19,500	$ 27,500	$ 19,420	$ 28,820
Direct labor	10,400	20,500	10,660	21,240
Department manager salaries	4,300	5,200	4,400	4,400
Supplies used	3,300	900	3,170	920
Utilities	360	540	330	500
Rent	5,700	6,300	5,300	6,300
Totals	$ 43,560	$ 60,940	$ 43,280	$ 62,180

Exercise 9-1 (Static) Responsibility accounting performance report LO P1

1. Prepare a responsibility accounting performance report for the snowmobile department. (Under budget amounts should be indicated by a minus sign.)

2. Prepare a responsibility accounting performance report for the ATV department. (Under budget amounts should be indicated by a minus sign.)