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 Totals Rent Totals Controllable Costs Direct materials Department manager salaries Supplies used Budget Snowmobile $19,500 10,400 4,300 3,300 Responsibility Accounting Performance Report Manager, Snowmobile Department For Year Ended December 31 Budgeted 0 360 5,708 $.43,560 repare a responsibility accounting performance report for the snowmobile department. ote: Under budget amounts should be indicated by a minus sign. Actual ATV $ 27,500 20,500 5,200 900 540 6,300 $ 60,940 Actual Snowmobile $19,420 10,660 4,400 3,170 330 5,300 $43,280 Over (Under) Budget ATV $ 28,820 21,240 4,400 920 500 6,300 $ 62,180

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyz…