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.

Raw materials Employee wages Dept. manager salary Supplies used DepreciationEquip. Utilities Building rent Office department costs Totals Budget Actual Campers Trailers Combined Campers Trailers Combined $ 196,200 $ 278, 200 $ 474,400 $ 194,600 $ 273,400 $ 468,000 105,900 206,200 312,100 107,000 208,000 315,000 43,700 52,400 96,100 44,600 53,000 97,600 34,200 90,600 124,800 32,000 92,500 124,500 62,000 126,500 188,500 63,000 126,500 189,500 5,000 5,400 10,400 3,600 5,300 8,900 5,100 9,400 14,500 5,200 9,300 14,500 71,750 71,750 143,500 78,550 78,550 157,100 $ 523,850 $ 840,450 $1,364,300 $ 528,550 $ 846,550 $1,375,100 The office department's annual budget and its actual costs follow. Plant manager salary Other office salaries Other office costs Budget Actual $ 85,000 $ 85,000 32,500 26,600 26,000 45,500 $143,500 $157,100 Totals 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. 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 Raw materials $ 194,600 $ Employee wages Supplies used Depreciation-Equipment $ 196,200 105,900 34,200 107,000 32,000 1,600 (1,100) 2,200 62,000 63,000 (1,000) Totals $ 398,300 $ 396,600 $ 1,700 Req 1A Req 1B Req 10 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 Raw materials Employee wages Supplies used Depreciation-Equipment Totals 0 $ 0 0 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 Budgeted Amount For the Year Actual Over (Under) Amount Budget Controllable Costs Department manager salaries $ 43,700 $ 43,600 $ (100) Utilities Building rent Office department costs Camper department Trailer department Totals $ 43,700 $ 43,600 $ (100)