Exercise 22-1 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. Raw materials Employee wages Dept. manager salary Supplies used Depreciation-Equip. Utilities Rent Totals Snowmobile $21,300 12,200 6,100 5,280 7,800 540 7,500 $60,720 Budget ATV $29, 300 22,300 7,000 2,700 14,300 720 8,100 $84,420 Combined $ 50,600 34,500 13,100 7,980 22,100 1,260 15,600 $145, 140 Snowmobile $21, 220 12,640 6,200 4,970 7,800 510 7,100 $60,440 Actual ATV Combined $30,620 $ 51,840 23,040 35, 680 6,200 12,400 2,720 7,690 14,300 22,100 680 1,198 8.100 15,200 $85,660 $146, 100 Prepare a responsibility accounting report for the snowmobile department. (Under budget amounts should be indicated by a minus sign.) Over (Under) Budget Responsibility Accounting Performance Report Dept. Manager, Snowmobile Department For the Year Budgeted Amount Actual Amount Controllable Costs Raw materials Employee wages Supplies used Depreciation Equipment Totals