Billie Whitehorse, the plant manager of Travel Free'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 Whitehorse 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.

Responsibility Accounting Performance Report Dept. Manager, Trailer Department For the Year Budgeted Actual Over (Under) Amount Amount Budget Controllable Costs TotalsBudget Actual Campers Trailers Combined Campers Trailers Combined Raw materials $195,900 $275,800 $ 471,700 $195,200 $273,200 $ 468,400 Employee wages 104,950 205,600 310,550 107,400 207,200 314,600 Dept. manager salary 43,400 52,500 95,900 44,300 53,400 97,700 Supplies used 34,200 91,800 126,000 32,300 91,300 123,600 DepreciationEquip. 61,000 126,500 187,500 60,600 127,000 187,600 Utilities 4,400 6,200 10,600 4,800 5,900 10,700 Building rent 5,700 9,600 15,300 6,100 8,700 14,800 Office department costs 70,750 70,750 141,500 66,550 66,550 133,100 Totals $520,300 $838,750 $1,359,050 $517,250 $833,250 $1,350,500 Budget Actual Plant manager salary $ 83, 000 $ 84, 000 Other office salaries 36 , 500 25 , 700 Other office costs 22, 000 23, 400 Totals $141, 500 $133, 100