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Billie Whitehorse, the plant manager of Travel Frees Indiana plant, is responsible for all of that plants costs other than her own salary. The plant

Billie Whitehorse, the plant manager of Travel Frees Indiana plant, is responsible for all of that plants 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 Whitehorse also manages, provides services equally to the two operating departments. A budget is prepared for each operating department and the office department. The companys 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
Campers Trailers Combined Campers Trailers Combined
Raw materials $ 195,200 $ 276,200 $ 471,400 $ 194,200 $ 274,400 $ 468,600
Employee wages 106,150 205,400 311,550 107,600 208,000 315,600
Dept. manager salary 43,700 52,000 95,700 44,100 53,000 97,100
Supplies used 34,200 92,400 126,600 31,700 91,300 123,000
DepreciationEquip. 61,500 126,000 187,500 61,800 126,000 187,800
Utilities 5,200 6,200 11,400 4,500 5,600 10,100
Building rent 6,600 9,100 15,700 6,100 8,500 14,600
Office department costs 72,750 72,750 145,500 68,550 68,550 137,100
Totals $ 525,300 $ 840,050 $ 1,365,350 $ 518,550 $ 835,350 $ 1,353,900

The office departments annual budget and its actual costs follow.

Budget Actual
Plant manager salary $ 84,000 $ 101,000
Other office salaries 42,500 25,800
Other office costs 19,000 10,300
Totals $ 145,500 $ 137,100

Required: 1. Prepare responsibility accounting performance reports that list costs controlled by the following. a. Manager of the Camper department. b. Manager of the Trailer department. c. Manager of the Indiana plant. In each report, include the budgeted and actual costs and show the amount that each actual cost is over or under the budgeted amount.

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Req 1A Req 1B Req 1C Prepare responsibility accounting performance reports that list controllable costs. In each report, include the budgeted and actual costs and show the amount that each actual cost is over or under the budgeted amount for manager of the Camper department. (Under budget amounts should be indicated by a minus sign.) Responsibility Accounting Performance Report Dept. Manager, Camper Department For the Year Budgeted Actual Over (Under) Amount Amount Budget Controllable Costs Totals $ 0 $ 0 $ 0 Req 1A Req 1B > Req 1A Req 1B Reg 1c Prepare responsibility accounting performance reports that list controllable costs. In each report, include the budgeted and actual costs and show the amount that each actual cost is over or under the budgeted amount for manager of the Trailer department. (Under budget amounts should be indicated by a minus sign.) Responsibility Accounting Performance Report Dept. Manager, Trailer Department For the Year Budgeted Actual Over (Under) Amount Amount Budget Controllable Costs Totals $ 0 0 0 Req 1A Req 1C > Req 1A Req 1B Req 1c Prepare responsibility accounting performance reports that list controllable costs. In each report, include the budgeted and actual costs and show the amount that each actual cost is over or under the budgeted amount for manager of the Indiana plant. (Under budget amounts should be indicated by a minus sign.) Responsibility Accounting Performance Report Plant Manager, Indiana Plant For the Year Budgeted Actual Over (Under) Amount Amount Budget Controllable Costs Totals $ 0 $ 0 $ 0 Reg 1R Reg 16

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