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Required 1. Prepare responsibility accounting performance reports like those in Exhibit 22.2 that list costs controlled by the following. a. Manager of Refrigerator department. Check (10) $6,800 total under budget b. Manager of Dishwasher department. c. Manager of Chicago plant. (1c) Chicago plant controllable costs, $3,900 total over budget Applycic Component

Required 1. Prepare responsibility accounting performance reports like those in Exhibit 22.2 that list costs controlled by the following. a. Manager of Refrigerator department. Check (10) $6,800 total under budget b. Manager of Dishwasher department. c. Manager of Chicago plant. (1c) Chicago plant controllable costs, $3,900 total over budget Applycic Component

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Required 1. Prepare responsibility accounting performance reports like those in Exhibit 22.2 that list costs controlled a. Manager of Refrigerator department. Check (10) $6,800 total under budget b. Manager of Dishwasher department. c. Manager of Chicago plant. (1c) Chicago plant controllable costs, $3,900 total over budget Analysis Component 2. Did the plant manager or one of the operating department managers best control costs? the following.
Transcribed Image Text:Required 1. Prepare responsibility accounting performance reports like those in Exhibit 22.2 that list costs controlled a. Manager of Refrigerator department. Check (10) $6,800 total under budget b. Manager of Dishwasher department. c. Manager of Chicago plant. (1c) Chicago plant controllable costs, $3,900 total over budget Analysis Component 2. Did the plant manager or one of the operating department managers best control costs? the following.
Problem 22-1B Responsibility accounting performance reports; controllable and budgeted costs P1 Britney Brown is the plant manager of GT Co.'s Chicago plant. The Refrigerator and Dishwasher operating departments manufacture products and have their own managers. The Office department, which Brown also manages, provides services equally to the two operating departments. Each performance report includes only those costs that a particular operating department manager can control: direct materials, direct labor, supplies used, and utilities. The plant manager is responsible for the department managers' salaries, building rent, office salaries other than her own, and other office costs plus all costs controlled by the two operating department managers. The April departmental budgets and actual costs for the two operating departments follow. For Month Ended April 30 Direct materials Direct labor Department manager salaries Supplies used Utilities Building rent Office department costs Totals Budgeted Refrigerators $400,000 170,000 55,000 15,000 30,000 63,000 70,500 $803,500 The Office department's budgeted and actual costs follow. Actual Dishwashers Refrigerators Dishwashers $200,000 $385,000 $202,000 80,000 174,700 81,500 49,000 55,000 46,500 9,000 14,000 9,700 18,000 34,500 20,700 17,000 65,800 16,500 70,500 75,000 75,000 $443,500 $804,000 $451,900 For Month Ended April 30 Plant manager salary Other office salaries Other office costs Totals Budgeted Actual $ 80,000 $ 85,000 40,000 35,200 21,000 29,800 $141,000 $150,000 Page 896
Transcribed Image Text:Problem 22-1B Responsibility accounting performance reports; controllable and budgeted costs P1 Britney Brown is the plant manager of GT Co.'s Chicago plant. The Refrigerator and Dishwasher operating departments manufacture products and have their own managers. The Office department, which Brown also manages, provides services equally to the two operating departments. Each performance report includes only those costs that a particular operating department manager can control: direct materials, direct labor, supplies used, and utilities. The plant manager is responsible for the department managers' salaries, building rent, office salaries other than her own, and other office costs plus all costs controlled by the two operating department managers. The April departmental budgets and actual costs for the two operating departments follow. For Month Ended April 30 Direct materials Direct labor Department manager salaries Supplies used Utilities Building rent Office department costs Totals Budgeted Refrigerators $400,000 170,000 55,000 15,000 30,000 63,000 70,500 $803,500 The Office department's budgeted and actual costs follow. Actual Dishwashers Refrigerators Dishwashers $200,000 $385,000 $202,000 80,000 174,700 81,500 49,000 55,000 46,500 9,000 14,000 9,700 18,000 34,500 20,700 17,000 65,800 16,500 70,500 75,000 75,000 $443,500 $804,000 $451,900 For Month Ended April 30 Plant manager salary Other office salaries Other office costs Totals Budgeted Actual $ 80,000 $ 85,000 40,000 35,200 21,000 29,800 $141,000 $150,000 Page 896
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