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 For Year Ended December 31 Direct materials Direct labor Department manager salaries Supplies used Utilities Rent Totals Controllable Costs Responsibility Accounting Performance Report Manager, ATV Department For Year Ended December 31 Direct materials Direct labor Supplies used Utilities Snowmobile $ 19,990 10,900 4,800 3,850 410 6,200 $ 46,150 Prepare a responsibility accounting performance report for the ATV department. (Under budget amounts should be indi minus sign.) Budgeted $ Actual ATV $ 28,000 21,000 5,700 950 590 6,800 $ 63,040 19,920 11,210 X 3,670 X 6,500 X 41,300 $ $ 19,990 $ 10,200 X 3,850 X 6,500 X Totals $ 40,540 $ 60 *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. Over (Under) Budget Actual Snowmobile $ 19,920 11,210 4,900 3,670 380 5,800 $ 45,880 (70) X 310 X (180) X 0x ATV $ 29,370 21,790 4,900 970 550 6,800 $ 64,380
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 For Year Ended December 31 Direct materials Direct labor Department manager salaries Supplies used Utilities Rent Totals Controllable Costs Responsibility Accounting Performance Report Manager, ATV Department For Year Ended December 31 Direct materials Direct labor Supplies used Utilities Snowmobile $ 19,990 10,900 4,800 3,850 410 6,200 $ 46,150 Prepare a responsibility accounting performance report for the ATV department. (Under budget amounts should be indi minus sign.) Budgeted $ Actual ATV $ 28,000 21,000 5,700 950 590 6,800 $ 63,040 19,920 11,210 X 3,670 X 6,500 X 41,300 $ $ 19,990 $ 10,200 X 3,850 X 6,500 X Totals $ 40,540 $ 60 *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. Over (Under) Budget Actual Snowmobile $ 19,920 11,210 4,900 3,670 380 5,800 $ 45,880 (70) X 310 X (180) X 0x ATV $ 29,370 21,790 4,900 970 550 6,800 $ 64,380
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter4: Job-order Costing And Overhead Application
Section: Chapter Questions
Problem 27BEA: Use the following information for Brief Exercises 4-27 and 4-28: Quillen Company manufactures a...
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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.
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![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
For Year Ended December 31
Direct materials
Direct labor
Department manager salaries
Supplies used
Utilities
Rent
Totals
Responsibility Accounting Performance Report
Manager, ATV Department
For Year Ended December 31
Controllable Costs
Snowmobile
$ 19,990
10,900
4,800
3,850
410
6,200
$ 46,150
Budgeted
$
Prepare a responsibility accounting performance report for the ATV department. (Under budget amounts should be indicated
minus sign.)
19,990 $
10,200 x
3,850 x
6,500 X
Actual
19,920
11,210
Direct materials
Direct labor
Supplies used
Utilities
Totals
$
40,540
$
60
*Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted.
ATV
$ 28,000
21,000
5,700
950
590
6,800
$ 63,040
$
3,670 X
6,500 X
41,300 $
Over
(Under)
Budget
(70) X
310
(180) X
0x
Actual
Snowmobile
$ 19,920
11, 210
4,900
3,670
380
5,800
$ 45,880
ATV
$ 29,370
21,790
4,900
970
550
6,800
$ 64,380](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F260dc603-6109-45c6-aa37-7bd69fdfd57f%2F8014ba0e-ad4e-4cf7-a7d4-49baad612089%2Fpm6k7ef_processed.png&w=3840&q=75)
Transcribed Image Text: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
For Year Ended December 31
Direct materials
Direct labor
Department manager salaries
Supplies used
Utilities
Rent
Totals
Responsibility Accounting Performance Report
Manager, ATV Department
For Year Ended December 31
Controllable Costs
Snowmobile
$ 19,990
10,900
4,800
3,850
410
6,200
$ 46,150
Budgeted
$
Prepare a responsibility accounting performance report for the ATV department. (Under budget amounts should be indicated
minus sign.)
19,990 $
10,200 x
3,850 x
6,500 X
Actual
19,920
11,210
Direct materials
Direct labor
Supplies used
Utilities
Totals
$
40,540
$
60
*Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted.
ATV
$ 28,000
21,000
5,700
950
590
6,800
$ 63,040
$
3,670 X
6,500 X
41,300 $
Over
(Under)
Budget
(70) X
310
(180) X
0x
Actual
Snowmobile
$ 19,920
11, 210
4,900
3,670
380
5,800
$ 45,880
ATV
$ 29,370
21,790
4,900
970
550
6,800
$ 64,380
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