Fey Company’s organization chart includes the president; the vice president of p
ID: 2516745 • 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 $44,790 actual, $44,170 budget; direct labor $83,850 actual, $84,600 budget; manufacturing overhead $53,940 actual, $50,290 budget.
Machining Department—Dallas: total manufacturing costs $224,110 actual, $217,010 budget.
Atlanta Plant: total manufacturing costs $423,640 actual, $423,990 budget.
Tucson Plant: total manufacturing costs $494,690 actual, $497,210 budget.
The Dallas plant manager’s office costs were $97,980 actual and $94,730 budget. The vice president of production’s office costs were $132,430 actual and $131,150 budget. Office costs are not allocated to departments and plants.
(a)
To Dallas Department Manager—Finishing
Month: July
Controllable Costs:
Budget
Actual
Favorable
Unfavorable
Neither Favorable
nor Unfavorable
Total
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(b)
To Assembly Plant Manager—Dallas
Month: July
Controllable Costs:
Budget
Actual
Favorable
Unfavorable
Neither Favorable
nor Unfavorable
Total
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 $44,790 actual, $44,170 budget; direct labor $83,850 actual, $84,600 budget; manufacturing overhead $53,940 actual, $50,290 budget.
Machining Department—Dallas: total manufacturing costs $224,110 actual, $217,010 budget.
Atlanta Plant: total manufacturing costs $423,640 actual, $423,990 budget.
Tucson Plant: total manufacturing costs $494,690 actual, $497,210 budget.
The Dallas plant manager’s office costs were $97,980 actual and $94,730 budget. The vice president of production’s office costs were $132,430 actual and $131,150 budget. Office costs are not allocated to departments and plants.
Explanation / Answer
Answer
A.The reports in a responsibility system for: The Finishing Department—Dallas.
B.The reports in a responsibility system for: The plant manager—Dallas.
Controllable Costs: Budget Actual Fav/Unfav Direct material 44170 44790 620U Direct labor 84600 83850 750F Overhead 50290 53940 3650U Total 179060 182580 3520URelated Questions
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