Exercise 10-13 (Part Level Submission) Fultz Company’s organization chart includ
ID: 2496954 • Letter: E
Question
Exercise 10-13 (Part Level Submission) 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 $43,640 actual, $45,010 budget; direct labor $83,520 actual, $84,010 budget; manufacturing overhead $52,310 actual, $50,410 budget. Machining Department—Dallas: Total manufacturing costs $224,620 actual, $218,390 budget. Atlanta Plant: Total manufacturing costs $424,810 actual, $421,970 budget. Tucson Plant: Total manufacturing costs $495,580 actual, $497,880 budget. The Dallas plant manager’s office costs were $97,160 actual and $92,320 budget. The vice president of production’s office costs were $135,620 actual and $134,340 budget. Office costs are not allocated to departments and plants.
(c) Prepare the reports in a responsibility system for: The vice president of production. To Vice President—Production Month: July Controllable Costs: Budget Actual Favorable F Unfavorable U Neither Favorable nor Unfavorable N V P Production $ $ $ FNU Assembly plants: AtlantaDallasFinishingMachiningTucson FUN AtlantaDallasFinishingMachiningTucson UFN AtlantaDallasFinishingMachiningTucson FUN Total $
Explanation / Answer
Finishing Department
Actual
TOTAL
Budget
TOTAL
Variance
Dallas
Atlanta
Tucson
Dallas
Atlanta
Tucson
Direct material
43640
43640
45010
45010
1370 F
Direct labor
83520
83520
84010
84010
490 F
manufacturing overhead
52310
52310
50410
50410
1900 U
Machining Department
manufacturing costs
224620
424810
495580
1145010
218390
421970
497880
1138240
6770 U
office costs
97160
97160
92320
4840 U
Production Cost
135620
134340
1280 U
Finishing Department
Actual
TOTAL
Budget
TOTAL
Variance
Dallas
Atlanta
Tucson
Dallas
Atlanta
Tucson
Direct material
43640
43640
45010
45010
1370 F
Direct labor
83520
83520
84010
84010
490 F
manufacturing overhead
52310
52310
50410
50410
1900 U
Machining Department
manufacturing costs
224620
424810
495580
1145010
218390
421970
497880
1138240
6770 U
office costs
97160
97160
92320
4840 U
Production Cost
135620
134340
1280 U
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