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Fey Company’s organization chart includes the president; the vice president of p

ID: 2549653 • 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, $48,060 budget; direct labor $82,530 actual, $82,470 budget; manufacturing overhead $50,810 actual, $50,290 budget.

Machining Department—Dallas: total manufacturing costs $223,720 actual, $218,800 budget.

Atlanta Plant: total manufacturing costs $424,010 actual, $421,830 budget.

Tucson Plant: total manufacturing costs $495,820 actual, $495,450 budget.

The Dallas plant manager’s office costs were $97,980 actual and $94,340 budget. The vice president of production’s office costs were $132,450 actual and $132,680 budget. Office costs are not allocated to departments and plants.

To Dallas Department Manager—Finishing

Month: July

Controllable Costs:

Budget

Actual

Favorable
Unfavorable
Neither Favorable
nor Unfavorable

            Total

To Assembly Plant Manager—Dallas

Month: July

Controllable Costs:

Budget

Actual

Favorable
Unfavorable
Neither Favorable
nor Unfavorable

            Total

To Vice President—Production

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 $41,050 actual, $48,060 budget; direct labor $82,530 actual, $82,470 budget; manufacturing overhead $50,810 actual, $50,290 budget.

Machining Department—Dallas: total manufacturing costs $223,720 actual, $218,800 budget.

Atlanta Plant: total manufacturing costs $424,010 actual, $421,830 budget.

Tucson Plant: total manufacturing costs $495,820 actual, $495,450 budget.

The Dallas plant manager’s office costs were $97,980 actual and $94,340 budget. The vice president of production’s office costs were $132,450 actual and $132,680 budget. Office costs are not allocated to departments and plants.

Explanation / Answer

Answer:

1

Dallas Department Manager—Finishing

Dallas Department Manager—Finishing

Controllable cost

Budgeted

Actual

Favorable
Unfavorable
Neither Favorable
nor Unfavorable

Direct material

48060

41050

7010 F

Direct Labor

82470

82530

60 U

Manufacturing Overhead

50290

50810

520 U

Total

180820

174390

6430 F

______________________________________

2

To assembly plant manager -Dallas

Controllable cost

Budgeted

Actual

Favorable
Unfavorable
Neither Favorable
nor Unfavorable

Dallas Office

94340

97980

3640 U

Department

Machine

218800

223720

4920 U

Fishing

180820

174390

6430 F

493960

496090

2130 U

____________________________________________

3

To vice president production

Controllable cost

Budgeted

Actual

Favorable
Unfavorable
Neither Favorable
nor Unfavorable

VP production

132680

132450

230 F

Department

Atlanta

421830

424010

2180 U

Dallas

493960

496090

2130 U

Tucsan

495450

495820

370 U

1543920

1548370

4450 U

Dallas Department Manager—Finishing

Controllable cost

Budgeted

Actual

Favorable
Unfavorable
Neither Favorable
nor Unfavorable

Direct material

48060

41050

7010 F

Direct Labor

82470

82530

60 U

Manufacturing Overhead

50290

50810

520 U

Total

180820

174390

6430 F