Required information [The following information applies to the questions displayed below.) Totals 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 i Utilities Rent Totals Snowmobile ATV Snowmobile $ 27,700 $ 19,620 20,700 10,880 TITI 5,400 4,600 920 3,370 560 350 6,500 5,500 $ 61,780 $ 44,320 Controllable Costs $ 19,700 10,600 4,500 3,520 380 5,900 Prepare a responsibility accounting performance report for the ATV department. Note: Under budget amounts should be indicated by a minus sign. $ 44,600 Responsibility Accounting Performance Report Manager, ATV Department For Year Ended December 31 Budgeted Actual Actual Over (Under) Budget ATV $ 29,040 21,460 4,600 940 520 6,500 $ 63,060

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Topic Video
Question

5

Required information
[The following information applies to the questions displayed below.]
Totals
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
$ 19,700
10,600
4,500
3,520
380
5,900
$ 44,600
Responsibility Accounting Performance Report
Manager, ATV Department
For Year Ended December 31
Budgeted
Controllable Costs
ATV
$ 27,700
20,700
5,400
Prepare a responsibility accounting performance report for the ATV department.
Note: Under budget amounts should be indicated by a minus sign.
Actual
920
560
6,500
$ 61,780
Over (Under)
Budget
Actual
Snowmobile
$ 19,620
10,880
4,600
3,370
350
5,500
$ 44,320
ATV
$ 29,040
21,460
4,600
940
520
6,500
$ 63,060
Transcribed Image Text:Required information [The following information applies to the questions displayed below.] Totals 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 $ 19,700 10,600 4,500 3,520 380 5,900 $ 44,600 Responsibility Accounting Performance Report Manager, ATV Department For Year Ended December 31 Budgeted Controllable Costs ATV $ 27,700 20,700 5,400 Prepare a responsibility accounting performance report for the ATV department. Note: Under budget amounts should be indicated by a minus sign. Actual 920 560 6,500 $ 61,780 Over (Under) Budget Actual Snowmobile $ 19,620 10,880 4,600 3,370 350 5,500 $ 44,320 ATV $ 29,040 21,460 4,600 940 520 6,500 $ 63,060
Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Costing Systems
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education