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 Snowmobile $ 21,080 12,000 5,900 5,060 520 7,300 $ 51,860 ATV $ 29,100 22,100 6,800 1,060 700 7,900 $ 67,660 Actual Snowmobile $ 21,020 12,420 6,000 4,770 490 6,900 $ 51,600 ATV $ 30,580 23,000 6,000 1,110 660 7,900 $ 69,250

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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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
Direct materials
Direct labor
Supplies used
Utilities
Totals
Snowmobile
$ 21,080
12,000
5,900
5,060
520
7,300
$ 51,860
Responsibility Accounting Performance Report
Manager, Snowmobile Department
For Year Ended December 31
Budgeted
$
Prepare a responsibility accounting performance report for the snowmobile department. (Under budget amounts should be indicated
by a minus sign.)
0 $
Actual
ATV
$ 29,100
22,100
6,800
1,060
700
7,900
$67,660
0 $
Actual
Over (Under)
Budget
Snowmobile
$ 21,020
12,420
6,000
4,770
490
6,900
$ 51,600 $ 69,250
ATV
$ 30,580
23,000
6,000
1, 110
660
7,900
Transcribed Image Text: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 Direct materials Direct labor Supplies used Utilities Totals Snowmobile $ 21,080 12,000 5,900 5,060 520 7,300 $ 51,860 Responsibility Accounting Performance Report Manager, Snowmobile Department For Year Ended December 31 Budgeted $ Prepare a responsibility accounting performance report for the snowmobile department. (Under budget amounts should be indicated by a minus sign.) 0 $ Actual ATV $ 29,100 22,100 6,800 1,060 700 7,900 $67,660 0 $ Actual Over (Under) Budget Snowmobile $ 21,020 12,420 6,000 4,770 490 6,900 $ 51,600 $ 69,250 ATV $ 30,580 23,000 6,000 1, 110 660 7,900
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