Question

Fey Company’s organization chart includes the president; the vice president of production; three assembly plants—Dallas, Atlanta, and Tucson; and two departments within each plant—Machining and Finishing. Budget and actual manufacturing cost data for July 2017 are as follows. Finishing Department—Dallas: direct materials $41,050 actual, $48,060 budget; direct labor $82,530 actual, $82,470 budget; manufacturing overhead $50,810 actual, $50,290 budget. Machining Department—Dallas: total manufacturing costs $223,720 actual, $218,800 budget. Atlanta Plant: total manufacturing costs $424,010 actual, $421,830 budget. Tucson Plant: total manufacturing costs $495,820 actual, $495,450 budget. The Dallas plant manager’s office costs were $97,980 actual and $94,340 budget. The vice president of production’s office costs were $132,450 actual and $132,680 budget. Office costs are not allocated to departments and plants.

Prepare the reports in a responsibility system for: The Finishing Department-Dallas. To Dallas Department Manager-Finishing Controllable Costs: Budget Actual $ Total Attempts: 0 of 7 used Save for Later Submit Answer

Answer 1

Controllable Costs:	Budget	Actual	Difference
Direct Materials	48060	41050	7010	Favorable
Direct Labor	82470	82530	60	Unfavorable
Manufacturing Overhead	50290	50810	520	Unfavorable
Total	180820	174390	6430	Favorable