Fey Company’s organization chart includes the president; the vice president of p
ID: 2515275 • 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 $42,750 actual, $48,120 budget; direct labor $84,900 actual, $84,180 budget; manufacturing overhead $52,750 actual, $51,380 budget.
Machining Department—Dallas: total manufacturing costs $221,400 actual, $217,150 budget.
Atlanta Plant: total manufacturing costs $424,430 actual, $423,180 budget.
Tucson Plant: total manufacturing costs $497,000 actual, $496,480 budget.
Prepare the reports in a responsibility system for:
A)The Finishing Department—Dallas.
B) The plant manager - Dallas
C) The vice president of production.
Explanation / Answer
SOLUTION:
To Dallas Department Manager—Finishing Controllable Costs Budget Actual Favorable/ Unfavorable Direct Materials 48,120 42,750 (5,370) Favorable Direct Labor 84,180 84,900 720 Unfavorable Manufacturing Overhead 51,380 52,750 1,370 Unfavorable Total 183,680 180,400 (3,280) Favorable To Assembly Plant Manager—Dallas Controllable Costs Budget Actual Favorable/ Unfavorable Dallas Office Departments: 94,090 96,390 (2,300) Unfavorable Machining 217,150 221,400 (4,250) Unfavorable Finishing 183,680 180,400 3,280 Favorable Total 494,920 498,190 (3,270) Unfavorable To Vice President—Production Controllable Costs Budget Actual Favorable/ Unfavorable V P Production 130,120 135,210 (5,090) Unfavorable Assembly plants: Dallas 494,920 498,190 (3,270) Unfavorable Atlanta 423,180 424,430 (1,250) Unfavorable Tucson 496,480 497,000 (520) Unfavorable Total 1,544,700 1,554,830 (10,130) UnfavorableRelated Questions
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