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
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
Chapter1: Financial Statements And Business Decisions
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