Required information [The following information applies to the questions displayed below.] 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 Actual For Year Ended December 31 Snowmobile $ 19,610 10,500 4,400 3,410 ATV Snowmobile ATV $ 19,520 10,770 4,500 3,270 $ 27,600 $ 28,930 21,350 4,500 Direct materials Direct labor Department manager salaries Supplies used Utilities 20,600 5,300 910 940 370 550 340 510 5,800 $ 44,090 5,400 $ 43,800 Rent 6,400 6,400 Totals $ 61,360 $ 62,630 Prepare a responsibility accounting performance report for the snowmobile department. (Under budget amounts should be indicated by a minus sign.) Responsibility Accounting Performance Report Manager, Snowmobile Department For Year Ended December 31 Over (Under) Budget Controllable Costs Budgeted Actual Direct materials Direct labor Supplies used Utilities Totals
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
![Required information
[The following information applies to the questions displayed below.]
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
Actual
For Year Ended December 31
Direct materials
Snowmobile
$ 19,610
ATV
Snowmobile
ATV
$ 27,600
$ 19,520
10,770
4,500
$ 28,930
21,350
4,500
Direct labor
Department manager salaries
Supplies used
Utilities
10,500
4,400
3,410
20,600
5,300
3,270
340
910
940
370
550
510
Rent
5,800
6,400
5,400
6,400
Totals
$ 44,090
$ 61,360
$ 43,800
$ 62,630
Prepare a responsibility accounting performance report for the snowmobile department. (Under budget amounts should be indicated
by a minus sign.)
Responsibility Accounting Performance Report
Manager, Snowmobile Department
For Year Ended December 31
Over (Under)
Budget
Controllable Costs
Budgeted
Actual
Direct materials
Direct labor
Supplies used
Utilities
Totals](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb8c491fe-873b-4c92-a492-70fd693654c7%2F0102e4cb-6ae0-48c4-8034-c5e58502cba9%2Fryu3i3s_processed.png&w=3840&q=75)
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