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Becky Hoefer, the plant manager of Travel Far?s In...




Becky Hoefer, the plant manager of Travel Far?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 camper and trailer operating departments manufacture different products and have their own managers. The office department, which Hoefer 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. Budget Actual Campers Trailers Combined Campers Trailers Combined Raw materials $ 160,000 $ 250,000 $ 410,000 $ 159,400 $ 246,500 $ 405,900 Employee wages 99,000 191,000 290,000 102,300 193,700 296,000 Dept. manager salary 40,000 44,000 84,000 41,000 47,000 88,000 Supplies used 34,000 83,000 117,000 31,900 84,600 116,500 Depreciation?Equip. 58,000 110,000 168,000 58,000 110,000 168,000 Utilities 2,800 4,200 7,000 2,700 3,800 6,500 Building rent 5,000 8,000 13,000 4,800 7,200 12,000 Office department costs 56,000 56,000 112,000 54,450 54,450 108,900 Totals $ 454,800 $ 746,200 $ 1,201,000 $ 454,550 $ 747,250 $ 1,201,800 The office department?s annual budget and its actual costs follow. Budget Actual Plant manager salary $ 60,000 $ 62,000 Other office salaries 30,000 27,700 Other office costs 22,000 19,200 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Totals $ 112,000 $ 108,900 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. (Leave no cells blank - be certain to enter "0" wherever required. Negative amounts should be indicated by a minus sign. Omit the "$" sign in your response.) a. Manager of the camper department. Responsibility Accounting Performance Report Manager, Camper Department For the year -------------------------------------------------------------------------------- Budgeted Amount Actual Amount Over (Under) Budget Controllable Costs (Click to select)Office department costsRaw materialsDept. manager salaryBuilding rentUtilities $ $ $ (Click to select)Employee wagesOffice department costsUtilitiesBuilding rentSupplies manager salary (Click to select)Supplies manager salaryAccumulated depreciationDept. manager salarySupplies usedBuilding rent (Click to select)Building rentDept. manager salaryAccumulated depreciationDepreciation-EquipmentOffice department costs Totals $ $ $ b. Manager of the trailer department. Responsibility Accounting Performance Report Manager, Trailer Department For the year -------------------------------------------------------------------------------- Budgeted Amount Actual Amount Over (Under) Budget Controllable Costs (Click to select)UtilitiesDept. manager salaryRaw materialsOffice department costsBuilding rent $ $ $ (Click to select)Office department costsBuilding rentSupplies manager salaryUtilitiesEmployee wages (Click to select)Supplies usedAccumulated depreciationSupplies manager salaryBuilding rentDept. manager salary (Click to select)Office department costsDept. manager salaryBuilding rentAccumulated depreciationDepreciation-Equipment Totals $ $ $ c. Manager of the Indiana plant. Responsibility Accounting Performance Report Manager, Indiana Plant For the year -------------------------------------------------------------------------------- Budgeted Amount Actual Amount Over (Under) Budget Controllable Costs (Click to select)Accumulated depreciationDepreciation expenseDept. manager salariesSupplies usedSupplies manager salary $ $ $ (Click to select)Supplies usedAccumulated depreciationUtilitiesSupplies manager salarySales salaries (Click to select)Supplies usedEmployee wagesBuilding rentRaw materialsEquipment (Click to select)Supplies usedOther office salariesEquipmentAccumulated depreciationEmployee wages (Click to select)Other office costsRent expenseEmployee wagesRaw materialsSupplies used (Click to select)Supplies usedSupplies manager salaryAccumulated depreciationCamper departmentEquipment (Click to select)Sales discountsSupplies usedSales expenseTrailer departmentEmployee wages Total $ $ $


Paper#3098 | Written in 18-Jul-2015

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