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Exercise 09-2 Responsibility accounting report-cost center LO P1 Arctica manufactures snowmobiles and ATVs. These products are made in different departments, and each department has its

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Exercise 09-2 Responsibility accounting report-cost center LO P1 Arctica manufactures snowmobiles and ATVs. These products are made in different departments, and each department has its own manager. Each responsibility performance report only includes those costs that the particular department manager can control: raw materials, wages, supplies used, and equipment depreciation. Budget Snowmobile $19,700 10,600 4,500 ATV $27,700 20,700 Combined $ 47,400 31,300 9,900 Snowmobile $19,620 10,880 Actual ATV Combined $29,040 $ 48,660 21,460 32,340 5,400 4,600 920 4,440 4,600 3,370 9,200 4,310 Raw materials Employee wages Dept. manager salary Supplies used Depreciation-Equip. Utilities Rent Totals 3,520 6,200 12,700 380 5,900 $50, 800 560 6,500 $74,480 18,900 940 12,400 $125,280 6, 200 350 5,500 $50,520 940 12,700 18,900 520 870 6,500 12,000 $ 75, 760 $126,280 Prepare a responsibility accounting report for the ATV department. (Under budget amounts should be indicated by a minus sign.) Responsibility Accounting Performance Report Dept. Manager, ATV Department For the Year Budgeted Over (Under) Actual Amount Amount Budget Controllable Costs: Raw materials Employee wages Supplies used Depreciation-Equipment Totals

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