Reference no: EM13356595

Responsibility Accounting Performance report for various departments in firm.

Billie Whitehorse, the plant manager of Travel Free's Indiana plant, is responsible for all of that plant's costs other than her own salary. The plant has two operating departments and one service department. The camper and trailer operating departments manufacture different products and have their own managers. The office department, which Whitehorse also manages, provides services equally to the two operating departments. A budget is prepared for Each operating department and the office department. The company's responsibility accounting system must assemble information to present budgeted and actual costs in performance reports for each operating department manager and the plant manager. Each performance report includes only those costs that a particular operating department manager can control: raw materials, wages, supplies used, and equipment depreciation. The plant manager is responsible for the department managers' salaries, utilities, building rent, office salaries other than her own, and other office costs plus all costs controlled by the two operating department managers. The annual departmental budgets and actual costs for the two operating departments follow. 

	Campers	Trailers	Combined	Campers	Trailers	Combined
Raw materials	$195,700	$278,000	$473,700	$194,500	$274,000	$468,500
Employee wages	105,150	206,400	311,550	107,200	206,800	314,000
Dept. manager salary	43,300	51,900	95,200	44,200	54,000	98,200
Supplies used	34,200	91,800	126,000	32,000	92,200	124,200
Depreciation-Equip.	62,000	127,000	189,000	62,400	126,000	188,400
Utilities	3,800	5,200	9,000	4,500	5,900	10,400
Building rent	6,300	9,700	16,000	5,200	8,500	13,700
Office department costs	71,250	71,250	142,500	79,050	79,050	158,100
Totals	$521,700	$841,250	$1,362,950	$529,050	$846,450	$1,375,500

The office department's annual budget and its actual costs follow:

	Budget	Actual
Plant manager salary	$84,000	$101,000
Other office salaries	30,500	32,100
Other office costs	28,000	25,000