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Fey Company\'s organization chart includes the president; the vice president of

ID: 2490995 • Letter: F

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 $44,630 actual, $47,100 budget; direct labor $84,360 actual, $83,260 budget; manufacturing overhead $52,400 actual, $51,720 budget. Machining Department-Dallas: total manufacturing costs $223,350 actual, $218,600 budget. Atlanta Plant: total manufacturing costs $422,140 actual, $420,720 budget. Tucson Plant: total manufacturing costs $494,450 actual, $496,030 budget. The Dallas plant manager's office costs were $96,750 actual and $94,290 budget. The vice president of production's office costs were $132,960 actual and $131, 200 budget. Office costs are not allocated to departments and plants. Prepare the reports in a responsibility system for: The plant manager-Dallas.

Explanation / Answer

Controllable costs

Budget

Actual

Dallas Office

94,290

96,750

2,460

U

Departments:

Machining

218,600

223,350

4,750

U

Finishing

182,080

181,390

690

F

Total

494,970

501,490

6,520

U

Controllable costs

Budget

Actual

Dallas Office

94,290

96,750

2,460

U

Departments:

Machining

218,600

223,350

4,750

U

Finishing

182,080

181,390

690

F

Total

494,970

501,490

6,520

U