Question

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 comper 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 Row materials Employee wages Dept. manager salary Supplies used Depreciation Equip. Utilities Building rent Office department costs Totals Budget Actual Campers Trailers Combined Campers Trailers Combined $ 195,100 $ 278,200 $ 473,300 $ 194,200 $274,$ 468.200 104,800 205,800 310,600 107,000 206,500 313,800 43,400 52,100 95,500 43,500 53, see 97.00 34,200 92,200 126,400 33,200 91,300 124,500 61,000 126,500 187,500 61,800 127,000 188,800 5.200 5.400 10,600 4,200 5,000 9,200 6.900 9.109 16,000 5,400 8,600 14,000 62.250 67,750 135,500 71,550 71,550 14), 100 $ 510,350 $ 637,050 $1,355,400 $ 521,150 $ 037,750 $ 1,358,900 The office department's annual budget and its actual costs follow. Plant manager salary Other office salaries Other office costs Totals Budget Actual $ 86,000 5 97,000 42,500 26,900 7,000 19,200 $ 135,500 $ 143, 100 Required: 1. Prepare responsibility accounting performance reports that list costs controlled by the following a. Manager of the Camper department b. Manager of the Trailer department c. Manager of the Indiana plant In each report, include the budgeted and actual costs and show the amount that each actual cost is over or under the budgeted amount Complete this question by entering your answers in the tabs below.

Answer 1

Part 1-A

Responsibility Accounting Performance Report Dept. Manager, Camper Department
	For the year
	Budgeted Amount	Actual Amount	Over (Under) Budget
Controllable Costs
Raw materials	195100	194200	900
Employee wages	104800	107000	(2200)
Supplies used	34200	33200	1000
Depreciation—Equipment	61000	61800	(800)
Totals	395100	396200	(1100)

Part 1-B

Responsibility Accounting Performance Report Dept. Manager, Trailer Department
	For the year
	Budgeted Amount	Actual Amount	Over (Under) Budget
Controllable Costs
Raw materials	278200	274000	4200
Employee wages	205800	206800	(1000)
Supplies used	92200	91300	900
Depreciation—Equipment	126500	127000	(500)
Totals	702700	699100	3600

Part 1-C

Responsibility Accounting Performance Report Dept. Manager, Indiana Plant
	For the year
	Budgeted Amount	Actual Amount	Over (Under) Budget
Controllable Costs
Dept. manager salaries	95500	97300	(1800)
Utilities	10600	9200	1400
Building rent	16000	14000	2000
Other office salaries	42500	26900	15600
Other office costs	7000	19200	(12200)
Camper department	395100	396200	(1100)
Trailer department	702700	699100	3600
Totals	1269400	1261900	7500