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
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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 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
Snowmobile
$21, 190
Controllable Costs:
Raw materials
Employee wages
Supplies used
Depreciation-Equipment
Totals
12,100
6,000
5,170
7,700
530
7,400
710
8,000
$60,090 $82,280
Budget
ATV
$29, 200
22,200
6,900
1,070
14,200
Prepare a responsibility accounting report for the ATV department. (Under budget amounts should be Indicated
by a minus sign.)
Responsibility Accounting Performance Report
Dept. Manager, ATV Department
Budgeted
Amount
Combined
$ 50,390
34,300
12,900
6,240
21,900
1,240
15,400
$142,370
For the Year
Actual Amount
Actual
ATV
Combined
$30,690 $ 51,810
12,530
23,110
35,640
6,100
6,100
12,200
4,870
1,130
6,000
7,700
14, 200
21,900
500
670
1,170
7,000
8,000
15,000
$59,820 $83,900 $143,720
Over (Under)
Budget
Snowmobile
$21, 120
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 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 Snowmobile $21, 190 Controllable Costs: Raw materials Employee wages Supplies used Depreciation-Equipment Totals 12,100 6,000 5,170 7,700 530 7,400 710 8,000 $60,090 $82,280 Budget ATV $29, 200 22,200 6,900 1,070 14,200 Prepare a responsibility accounting report for the ATV department. (Under budget amounts should be Indicated by a minus sign.) Responsibility Accounting Performance Report Dept. Manager, ATV Department Budgeted Amount Combined $ 50,390 34,300 12,900 6,240 21,900 1,240 15,400 $142,370 For the Year Actual Amount Actual ATV Combined $30,690 $ 51,810 12,530 23,110 35,640 6,100 6,100 12,200 4,870 1,130 6,000 7,700 14, 200 21,900 500 670 1,170 7,000 8,000 15,000 $59,820 $83,900 $143,720 Over (Under) Budget Snowmobile $21, 120
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