Fey Company’s organization chart includes the president; the vice president of p
ID: 2528913 • 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 $41,050 actual, $44,680 budget; direct labor $83,110 actual, $83,870 budget; manufacturing overhead $52,120 actual, $51,130 budget.
Machining Department—Dallas: total manufacturing costs $220,130 actual, $216,870 budget.
Atlanta Plant: total manufacturing costs $424,810 actual, $422,130 budget.
Tucson Plant: total manufacturing costs $494,840 actual, $496,570 budget.
The Dallas plant manager’s office costs were $96,120 actual and $93,480 budget. The vice president of production’s office costs were $134,790 actual and $132,090 budget. Office costs are not allocated to departments and plants.
Prepare the reports in a responsibility system for: The Finishing Department—Dallas.
Controllable Costs:
Budget
Actual
Favorable
Unfavorable
Neither Favorable
nor Unfavorable
Total
Controllable Costs:
Budget
Actual
Favorable
Unfavorable
Neither Favorable
nor Unfavorable
MaintenanceManufacturing OverheadIndirect MaterialsUtilitiesDirect MaterialsDirect LaborIndirect LaborLubricants
$ $ $Neither Favorable nor UnfavorableFavorableUnfavorable
UtilitiesDirect LaborIndirect MaterialsLubricantsMaintenanceDirect MaterialsIndirect LaborManufacturing Overhead
FavorableUnfavorableNeither Favorable nor Unfavorable
Direct MaterialsDirect LaborUtilitiesIndirect LaborIndirect MaterialsLubricantsMaintenanceManufacturing Overhead
FavorableNeither Favorable nor UnfavorableUnfavorable
Total
$ $ $Neither Favorable nor UnfavorableUnfavorableFavorable
Explanation / Answer
To Department Manager: Dallas
Responsibility Report : Finishing Department - Dallas
Budget Actual Variances Controllable Costs $ $ $ Direct Materials 44,680 41,050 3,630 F Direct Labor 83,870 83,110 760 F Manufacturing Overhead 51,130 52,120 990 U Total $ 179,680 $ 176,280 3,400 FRelated Questions
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