Fultz Company\'s organization chart includes the president; the vice president o

Question

Fultz 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 2014 are as follows. Finishing Department-Dallas: direct materials $42,630 actual, $45,110 budget; direct labor $83,880 actual, $83,700 budget; manufacturing overhead $53,920 actual, $51,580 budget. Machining Department-Dallas: total manufacturing costs $224,870 actual, $218,740 budget. Atlanta Plant: total manufacturing costs $422,020 actual, $420,190 budget. Tucson Plant: total manufacturing costs $494,180 actual, $496,520 budget. The Dallas plant manager's office costs were $96,990 actual and $93,350 budget. The vice president of production's office costs were $135,140 actual and $130,550 budget. Office costs are not allocated to departments and plants. Prepare the reports in a responsibility system for: Prepare the reports in a responsibility system for: The plant manager-Dallas. Prepare the reports in a responsibility system for: The vice president of production.

Explanation / Answer

To Dallas Department Manager—Finishing Month: July Controllable Costs Budget Actual Fav/Unfav/Neither Fav nor Unfav Direct Materials                          45,110           42,630                2,480 Fav   Direct Labor                          83,700           83,880                   180 Unfavorable Manufacturing Overhead                          51,580           53,920                2,340 Unfavorable              Total                        180,390         180,430                      40 Unfavorable Prepare the reports in a responsibility system for: The plant manager—Dallas. To Assembly Plant Manager—Dallas Month: July Controllable Costs Budget Actual Fav/Unfav/Neither Fav nor Unfav Dallas Office $ $ $ Departments:        Machining         218,740           224,870              6,130 Unfavorable        Finishing         180,390           180,430                    40 Unfavorable              Total         399,130           405,300              6,170 Unfavorable Prepare the reports in a responsibility system for: The vice president of production. To Vice President—Production Month: July Controllable Costs Budget Actual Fav/Unfav/Neither Fav nor Unfav V P Production $ $ $ Assembly plants:        Atlanta         420,190           422,020              1,830 Unfav        Dallas         399,130           405,300              6,170 Unfav        Tucson         496,520           494,180              2,340 Fav              Total     1,315,840       1,321,500              5,660 Unfav

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