Arctica manufactures snowmobiles and ATVs. These products are made in different departments, and each department has its own manager. Each responsibility performance report includes only those costs that the department manager can control: direct materials, direct labor, supplies used, and utilities. Budget For Year Ended December 31 Direct materials Direct labor Department manager salaries Supplies used Utilities Rent Totals Controllable Costs Direct materials Direct labor Supplies used Utilities Totals Snowmobile $ 21,520 12,400 $ 6,300 5,500 560 7,700 $ 53,980 Responsibility Accounting Performance Report Manager, Snowmobile Department For Year Ended December 31 Budgeted 0 $ Prepare a responsibility accounting performance report for the snowmobile department. (Under budget amounts should be indicated by a minus sign.) ATV $ 29,500 22,500 7,200 1,100 740 8,300 Actual Actual Snowmobile $ 21,420 12,860 6,400 5,170 530 7,300 $ 69,340 $ 53,680 Over (Under) Budget 0$ ATV $ 31,020 23,440 6,400 1,160 700 8,300 $ 71,020

Arctica manufactures snowmobiles and ATVs. These products are made in different departments, and each department has its own manager. Each responsibility performance report includes only those costs that the department manager can control: direct materials, direct labor, supplies used, and utilities. Budget For Year Ended December 31 Direct materials Direct labor Department manager salaries Supplies used Utilities Rent Totals Controllable Costs Direct materials Direct labor Supplies used Utilities Totals Snowmobile $ 21,520 12,400 $ 6,300 5,500 560 7,700 $ 53,980 Responsibility Accounting Performance Report Manager, Snowmobile Department For Year Ended December 31 Budgeted 0 $ Prepare a responsibility accounting performance report for the snowmobile department. (Under budget amounts should be indicated by a minus sign.) ATV $ 29,500 22,500 7,200 1,100 740 8,300 Actual Actual Snowmobile $ 21,420 12,860 6,400 5,170 530 7,300 $ 69,340 $ 53,680 Over (Under) Budget 0$ ATV $ 31,020 23,440 6,400 1,160 700 8,300 $ 71,020

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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