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Becky Hoefer, the plant manager of Travel Far's Indiana plant, is responsible for all of that plant's costs other than her own salary. The plant

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Becky Hoefer, the plant manager of Travel Far's Indiana plant, is responsible for all of that plant's 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 Hoefer also manages, provides services equally to the two operating departments. A budget is prepared for each operating department and the office department. The company's 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 Trailers Trailers Combined 196,000 $275,600 471,600 194,400 273,400 467,800 Raw materials 311.050 107,000 207,000 314.000 Employee wages 105,250 205,800 43,900 52,300 96,200 44,600 53,700 98,300 Dept. manager salary Supplies used 33,200 92,400 125,600 33,200 91,900 125.100 188,300 Depreciation Equip 62,000 126,500 188,500 61,800 126,500 Utilities 3,400 5.200 8,600 3,600 5,600 9,200 Building rent 6.000 9,600 15.600 5.300 8,600 13,900 73,550 147,100 Office department costs 65,750 65,750 131,500 $523,450 $840,250 1,363,700 Totals $515,500 $833,150 1,348,650 The office department's annual budget and its actual costs follow. Budget 89,000 Plant manager salary 81,000 Other office salaries 44,500 26,400 Other office costs. 6,000 31,700 $131,500 $147,100 Totals

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