Arctica manufactures snowmobiles and ATVs. These products are made in different departments, and eachdepartment has its own manager. Each responsibility performance report only includes those costs that theparticular department manager can control: raw materials, wages, supplies used, and equipment depreciation.Raw materialsEmployee wagesDept. manager salarySupplies usedDepreciation-Equip.UtilitiesRentTotalsSnowmobile$21, 190Controllable Costs:Raw materialsEmployee wagesSupplies usedDepreciation-EquipmentTotals12,1006,0005,1707,7005307,4007108,000$60,090 $82,280BudgetATV$29, 20022,2006,9001,07014,200Prepare a responsibility accounting report for the ATV department. (Under budget amounts should be Indicatedby a minus sign.)Responsibility Accounting Performance ReportDept. Manager, ATV DepartmentBudgetedAmountCombined$ 50,39034,30012,9006,24021,9001,24015,400$142,370For the YearActual AmountActualATVCombined$30,690 $ 51,81012,53023,11035,6406,1006,10012,2004,8701,1306,0007,70014, 20021,9005006701,1707,0008,00015,000$59,820 $83,900 $143,720Over (Under)BudgetSnowmobile$21, 120

Controllable costs :— These are the cost that are modified and changes in short term period. These…

Arctica manufactures snowmobiles and ATVs. These products are made in different departments, and each department has its own manager. Each responsibility performance report only includes those costs that the particular department manager can control: raw materials, wages, supplies used, and equipment depreciation. Raw materials Employee wages Dept. manager salary Supplies used Depreciation-Equip. Utilities Rent Totals Budget ATV $29,200 22, 200 Snowmobile $21, 190 12,100 6,000 5,170 7,788 530 710 7,488 8,000 $60,090 $82,280 Controllable Costs: Raw materials Employee wages Supplies used Depreciation Equipment Totals 6,900 1,070 14,200 Budgeted Amount Responsibility Accounting Performance Report Dept. Manager, ATV Department Combined $ 50,390 34,300 12,900 6,240 21,900 1,240 15,400 $142,370 Prepare a responsibility accounting report for the ATV department. (Under budget amounts should be Indicated by a minus sign.) For the Year Actual Amount Snowmobile $21, 120 12,530 6,100 4,870 7,780 500 7,000 $59,820 Over (Under) Budget Actual ATV Combined $30,690 $ 51,810 23,110 35,640 6,100 1,130 14,200 12,200 6,000 21,900 678 1,170 8,000 15,000 $83,900 $143,728

Arctica manufactures snowmobiles and ATVs. These products are made in different departments, and each department has its own manager. Each responsibility performance report only includes those costs that the particular department manager can control: raw materials, wages, supplies used, and equipment depreciation. Raw materials Employee wages Dept. manager salary Supplies used Depreciation-Equip. Utilities Rent Totals Budget ATV $29,200 22, 200 Snowmobile $21, 190 12,100 6,000 5,170 7,788 530 710 7,488 8,000 $60,090 $82,280 Controllable Costs: Raw materials Employee wages Supplies used Depreciation Equipment Totals 6,900 1,070 14,200 Budgeted Amount Responsibility Accounting Performance Report Dept. Manager, ATV Department Combined $ 50,390 34,300 12,900 6,240 21,900 1,240 15,400 $142,370 Prepare a responsibility accounting report for the ATV department. (Under budget amounts should be Indicated by a minus sign.) For the Year Actual Amount Snowmobile $21, 120 12,530 6,100 4,870 7,780 500 7,000 $59,820 Over (Under) Budget Actual ATV Combined $30,690 $ 51,810 23,110 35,640 6,100 1,130 14,200 12,200 6,000 21,900 678 1,170 8,000 15,000 $83,900 $143,728

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Dog
Subject :- Accounting
Please refer to the pictures for info and questions 1 and 2. See below for question 3 format. Department Departmental Overhead Rate Standard Deluxe Hours per Unit Overhead Allocated Hours per Unit Overhead Allocated Assembly Finishing Totals $0 $0
Dhepa
2
Support Department Cost AlocationRaciprocal Services Method Blue Aica Inc. produces laptops and desktop computers. The company's production activities mainly occur in what the company calls its Laser and Forming departments. The Cafeteria and Security departments support the company's production activities and allocate costs based on the number of emplovees and souare feet, respectively. The total cost of the Security Department is 27.000. The total cost of the Cafeteria Departmentis $628,000. The number of employees and the square footage in each department are as folows Employees Square Feet Security Departme Cafeteria Department 10 S60 18 2,400 Laser Department 40 2,400 Forming Department s0 3,200 Using the reciprocal services method of spport department cost allecation, determine the total costs from the Security Department that should be allocated to the Cafeteria Department and to each of the production departments Cafeteria Laser Forming Department Department Deportment Security…
Support department cost allocation-direct method Becker Tabletops has two support departments (Janitorial and Cafeteria) and two production departments (Cutting and Assembly). Relevant details for these departments are as follows: Support Department Janitorial Department Cafeteria Department Cost Driver Square footage to be serviced Number of employees Janitorial Department $300,000 Janitorial Department cost allocation Cafeteria Department cost allocation Cafeteria Department $170,000 4,700 2 44 8 Department costs Square feet Number of employees Allocate the support department costs to the production departments using the direct method. Cutting Department LA Cutting Department $1,500,000 2,400 21 $ Assembly Department SA Assembly Department $680,000 3,600 9 S < 11:15 PM 2/25/2024
Job Order Cost Accounting for a Service Company The Fly Company provides advertising services for clients across the nation. The Fly Company is presently working on four projects, each for a different client. The Fly Company accumulates costs for each account (client) on the başis of both direct costs and allocated indirect costs. The direct costs include the charged time of professional personnel and media purchases (air time and ad space). Overhead is allocated to each project as a percentage of media purchases. The predetermined overhead rate is 50% of media purchases. On August 1, the four advertising projects had the following accumulated costs: August 1 Balances Vault Bank $68,700 Take Off Airlines 20,600 Sleepy Tired Hotels 48,100 Tastee Beverages 29,500 Total $166,900 During August, The Fly Company incurred the following direct labor and media purchase costs related to preparing advertising for each of the four accounts: Direct Labor Media Purchases Vault Bank $46,100 $173,800…
Provide solution for this accounting question
Rabia Company has two support departments, Human Resources and Maintenance, and two producing departments, Fabrication and Assembly Support Departments Producing Departments Human Resources Maintenance Fabrication Assembly Budgeted overhead Direct labor hours Machine hours Number of employees $40,000 $72,000 $140,000 $160,000 2,000 2,500 8,000 10,000 12,000 8,000 4 5 15 25 The company only had mixed cost. Human Resource costs are allocated based on the number of employees, and maintenance costs are allocated based on machine hours. Predetermined overhead rates for fabrication and assembly are based on direct labor hours. Required: 1. Calculate the allocation ratios. 2. Using the direct method, allocate the costs of the Human Resources and Maintenance deportments to the Fabrication and Assembly departments. Also write the final cost of both the production departments. 3. What if the Maintenance Department had 50 employees? How would that affect the allocation of Human Resources…
Please do not give solution in image format ?
Spacely, Corp. makes sprockets in two models: regular and professional, and wants to refine its costing system by allocating overhead using departmental rates. The estimated $843,100 of manufacturing overhead has been divided into two cost pools: Assembly Department and Packaging Department.The following data has been compiled: Spacely, Corp. Assembly Department Packaging Department Total Overhead costs $550,000 $293,100 $843,100 Machine Hours: Regular Model 153,000 35,100 188,100 Professional Model 352,400 12,600 365,000 Direct Labor Hours: Regular Model 40,300 80,600 120,900 Professional Model 322,700 413,400 736,100 (Round your answers to two decimal places when needed and use rounded answers for all future calculations).1. Compute the predetermined overhead allocation rates using machine hours as the allocation base for the Assembly Department and direct labor hours for the Packaging Department.