Problem 22-1A Responsibility accounting performance reports; controllable and budgeted costs LO P1

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		$	278,000		$	473,800		$	194,300		$	274,000		$	468,300
Employee wages		105,900			205,400			311,300			107,600			206,400			314,000
Dept. manager salary		43,500			53,000			96,500			44,400			53,800			98,200
Supplies used		34,000			90,200			124,200			32,600			91,600			124,200
DepreciationEquip.		62,000			127,000			189,000			61,200			126,000			187,200
Utilities		5,200			5,400			10,600			3,600			6,200			9,800
Building rent		6,300			9,500			15,800			5,900			8,600			14,500
Office department costs		65,750			65,750			131,500			74,550			74,550			149,100
Totals	$	518,450		$	834,250		$	1,352,700		$	524,150		$	841,150		$	1,365,300

The office departments annual budget and its actual costs follow.

	Budget			Actual
Plant manager salary	$	79,000		$	96,000
Other office salaries		40,500			25,600
Other office costs		12,000			27,500
Totals	$	131,500		$	149,100

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.

• Req 1A
• Req 1B
• Req 1C

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 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 Amount	Actual Amount	Over (Under) Budget
Controllable Costs
Totals

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 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 Amount	Actual Amount	Over (Under) Budget
Controllable Costs
Totals

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 for manager of the Indiana plant. (Under budget amounts should be indicated by a minus sign.)

Responsibility Accounting Performance Report
Plant Manager, Indiana Plant
	For the Year
	Budgeted Amount	Actual Amount	Over (Under) Budget
Controllable Costs
Totals