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 $ 195,800 $ 275,800 $ 471,600 $ 195,000 $ 274,200 $ 469,200 Employee wages 105,150 205,600 310,750 106,800 207,400 314,200 Dept. manager salary 43,400 52,800 96,200 44,000 53,900 97,900 Supplies used 34,200 92,000 126,200 32,300 92,500 124,800 DepreciationEquip. 61,000 126,500 187,500 61,200 126,500 187,700 Utilities 3,800 5,200 9,000 4,500 5,300 9,800 Building rent 6,300 9,200 15,500 5,900 8,800 14,700 Office department costs 72,750 72,750 145,500 81,550 81,550 163,100 Totals $ 522,400 $ 839,850 $ 1,362,250 $ 531,250 $ 850,150 $ 1,381,400 The office departments annual budget and its actual costs follow. Budget Actual Plant manager salary $ 85,000 $ 94,000 Other office salaries 38,500 25,600 Other office costs 22,000 43,500 Totals $ 145,500 $ 163,100

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.