Arctica manufactures snowmobiles and ATVs. These products are made in different

Question

Arctica manufactures snowmobiles and ATVs. These products are made in different departments, and each department has its own manager. Each responsibility performance report only includes those costs that the particular department manager can control: raw materials, wages, supplies used, and equipment depreciation. Actual Snowmobil ATV Snowmobile ATV Combin Raw materials $20,860 $28,900 49,760 $20,820 $30,220 51,040 Employee wages Dept. manager salary Supplies used 4,840 2,300 7,140 4,570 2,320 6,890 Depreciation- Equip. Utilities Rent Totals 11,800 21,900 33,700 12,200 22,640 34,840 5,700 6,600 12,300 5, 800 5, 800 11,600 7,400 13,900 21,300 7,400 13,900 21,300 640 1,110 $58,200 $81,980 $140,180 $57,960 $83,220 $141,180 500 7.100 7.700 14.800 6700 7.700 14.400 680 7,700 1,180 14,800 470 6, 700 7,700 14,400 Prepare a responsibility accounting report for the snowmobile department (Under budget amounts should be indicated sign.) should be indicated by a minus Prev 1 of Nxt

Explanation / Answer

A B B-A budgeted Actual Over/ (under) controllable cost raw material $ 20,860.00 $ 20,820.00 $            (40.00) employee wages $ 11,800.00 $ 12,200.00 $            400.00 supplies used $    4,840.00 $    4,570.00 $          (270.00) depreciation equipement $    7,400.00 $    7,400.00 $ -   total $ 44,900.00 $ 44,990.00 $ 90.00

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