Problem 22-1A Responsibility accounting performance reports; controllable and budgeted costs LO P1 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. Budget Raw materials Employee wages Dept. manager salary Supplies used Depreciation-Equip. Utilities Building rent Office department costs Totals Actual Campers Trailers Combined Campers Trailers Combined $195,700 $275,400 $ 471,100 $ 195,100 $273,400 $ 468,500 104,500 205,400 309,900 196,600 206,600 313, 200 43,600 52,700 96,300 44,800 53,300 98,100 33,600 91,400 125,000 31,700 91,300 123,000 61,500 126,000 187,500 60,600 125,500 186, 100 3,800 6,200 10,000 3,600 6,800 10,400 6,300 9,300 15,600 5,800 8,800 14,600 69,750 69,750 139,500 83,550 83,550 167,100 $518,750 $836,150 $1,354,900 $531,750 $849,250 $1,381,000 The office department's annual budget and its actual costs follow. Plant manager salary Other office salaries Other office costs Totals Budget Actual $ 79,000 $ 89,000 40,500 25,000 20,000 53,100 $139,500 $167,100 Required: 1. Prepare responsibility accounting performance reports that list costs controlled by the following. In each report, include the budgeted and actual costs and show the amount that each actual cost is over or under the budgeted amount. a. Manager of the camper department. b. Manager of the trailer department. c. Manager of the Indiana plant