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	$	196,100		$	276,000		$	472,100		$	194,600		$	273,400		$	468,000
Employee wages		104,650			205,400			310,050			107,000			207,800			314,800
Dept. manager salary		43,400			52,900			96,300			44,200			53,500			97,700
Supplies used		34,400			90,800			125,200			32,900			91,900			124,800
DepreciationEquip.		61,500			127,000			188,500			61,800			126,000			187,800
Utilities		3,600			5,000			8,600			3,900			5,300			9,200
Building rent		6,900			10,100			17,000			5,800			9,100			14,900
Office department costs		68,750			68,750			137,500			83,550			83,550			167,100
Totals	$	519,300		$	835,950		$	1,355,250		$	533,750		$	850,550		$	1,384,300

The office departments annual budget and its actual costs follow.

	Budget			Actual
Plant manager salary	$	79,000		$	93,000
Other office salaries		32,500			26,300
Other office costs		26,000			47,800
Totals	$	137,500		$	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.

Complete this question by entering your answers in the tabs below. 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 Actual Over (Under) Amount Amount Budget Controllable Costs Totals $ 0 $ 0 $ 0 Complete this question by entering your answers in the tabs below. 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 trailer department. (Under budget amounts should be indicated by a minus sign.) Responsibility Accounting Performance Report Dept. Manager, Trailer Department For the Year Budgeted Actual Over (Under) Amount Amount Budget Controllable Costs Totals $ 0 $ 0 $ 0 Req1A Reg 10 > Complete this question by entering your answers in the tabs below. 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 Indiana plant. (Under budget amounts should be indicated by a minus sign.) Responsibility Accounting Performance Report Plant Manager, Indiana Plant For the Year Budgeted Actual Over (Under) Amount Amount Budget Controllable Costs Totals $ $ $ 0