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. For Year Ended December 31 Direct materials Direct labor Department manager salaries Supplies used Utilities Rent Totals Budget Actual Snowmobile $ 19,610 10,500 4,400 ATV $ 27,600 Snowmobile $ 19,520 ATV $ 28,930 3,410 20,600 5,300 910 10,770 4,500 21,350 370 5,800 $ 44,090 550 6,400 3,270 340 4,500 940 510 5,400 6,400 $ 61,360 $ 43,800 $ 62,630
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. For Year Ended December 31 Direct materials Direct labor Department manager salaries Supplies used Utilities Rent Totals Budget Actual Snowmobile $ 19,610 10,500 4,400 ATV $ 27,600 Snowmobile $ 19,520 ATV $ 28,930 3,410 20,600 5,300 910 10,770 4,500 21,350 370 5,800 $ 44,090 550 6,400 3,270 340 4,500 940 510 5,400 6,400 $ 61,360 $ 43,800 $ 62,630
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter7: Allocating Costs Of Support Departments And Joint Products
Section: Chapter Questions
Problem 19E: Refer to the data in Exercise 7.18. When the capacity of the HR Department was originally...
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