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vovikov84 [41]
3 years ago
6

Arctica manufactures snowmobiles and ATVs. These products are made in different departments, and each department has its own man

ager. Each responsibility performance report only includes those costs that the particular department manager can control: raw materials, wages, supplies used, and equipment depreciation. Snowmobile (Budget) ATV (Budget) Combined (Budget) Snowmobile (Actual) ATV (Actual) Combined (Actual)Raw materials $19,990 $28,000 $47,990 $19,920 $29,320 $49,240Employee wages 10,900 21,000 31,900 11,210 21,740 32,950Dept. manager salary 4,800 5,700 10,500 4,900 4,900 9,800Supplies used 3,850 1,400 5,250 3,670 1,420 5,090Depreciation- Equip. 6,500 13,000 19,500 6,500 13,000 19,500Utilities 410 590 1,000 380 550 930Rent 6,200 6,800 13,000 5,800 6,800 12,600Totals $52,650 $76,490 $129,148 $52,380 $77,730 $130,110Prepare a responsibility accounting report for the snowmobile department.
Business
1 answer:
Ilya [14]3 years ago
3 0

Answer: Please see explanation for answers.

Explanation.

SW=Snowmobile

Given:

SM ATV Combined SM ATV Combine

            Budget       |   Actual

Raw materials $19,990 $28,000 $47,990 $19,920 $29,320$49,240

Employee wages 10,900 21,000 31,900 11,210 21,740 32,950

Dept. manager salary 4,800 5,700 10,500 4,900 4,900 9,800

Supplies used 3,850 1,400 5,250 3,670 1,420 5,090

Depreciation- Equip. 6,500 13,000 19,500 6,500 13,000 19,500

Utilities 410 590 1,000 380 550 930

Rent 6,200 6,800 13,000 5,800 6,800 12,600

Totals $52,650 $76,490 $129,148 $52,380 $77,730 $130,110

A responsibility accounting performance report is a budget that makes comparison of actual and budgeted amounts under the controlled costs in a department .Here utilities and rent costs cannot be controlled so will not be included.

Responsibility accounting report for the snowmobile department.

Budgeted   Actual Over/Under Budget

Controlled costs

Raw materials  19,990  19,920   -70

Employee wages 10,900   11,210  310

Dept. manager salary4,800 4,900 100

Supplies used   3,850   3,670   -180

Depreciation- Equip.6,500  6,500  0

Total               46,040    $46,200  160

Calculations .

Over/Underbudget = Actual - Budgeted amount.

Raw materials  =19,920-19990=   -70

Employee wages 11,210-10,900=  310

Dept. manager salary4,900-4800=100

Supplies used   3,670-3850= -180

Depreciation- Equip.6,500 -6,500 =0

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