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
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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![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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff96beba6-2919-4d0e-b7ed-499fbd5790bd%2F5b609408-59fc-45b0-994d-ab6163ee4af9%2Fycjlekx_processed.jpeg&w=3840&q=75)
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