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	$	195,900		$	275,600		$	471,500		$	194,200		$	273,200		$	467,400
Employee wages		104,900			206,400			311,300			107,200			207,600			314,800
Dept. manager salary		43,400			52,600			96,000			44,700			53,600			98,300
Supplies used		33,600			90,400			124,000			31,400			91,600			123,000
DepreciationEquip.		61,000			126,500			187,500			61,800			126,500			188,300
Utilities		5,000			5,200			10,200			4,800			5,900			10,700
Building rent		6,300			9,100			15,400			5,600			8,900			14,500
Office department costs		71,750			71,750			143,500			79,550			79,550			159,100
Totals	$	521,850		$	837,550		$	1,359,400		$	529,250		$	846,850		$	1,376,100

The office departments annual budget and its actual costs follow.

	Budget			Actual
Plant manager salary	$	83,000		$	98,000
Other office salaries		46,500			25,500
Other office costs		14,000			35,600
Totals	$	143,500		$	159,100

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.

A. Responsibility accounting performance report- CAMPER DEPARTMENT

Budgeted amount Actual amount Over (under) budget

Controllable costs
?
?
?
?
?
Total=

Choices- Raw mat, employee wages, departmental managers salary, supplies used, depreciation on equipment, utilities, building rent, office department costs.

INDIANA PLANT

Budgeted amount Actual amount Over (under) budget

Controllable costs
Plant manager salaries
Other office salaries
Other fixed costs
Total=