The production manager of the Super T-shirt Company is responsible for the activity of her department and the costs associated with production. Super T adheres to a responsibility centered budget process, and the manager's performance is measured by how well she performs to budget. Recently, the dark horse team won the local college basketball tournament. As a result, the sales department, which operates as a profit center, received an order for 10,000 t-shirts, but only if they could be delivered in three days. The production manager said she could meet the schedule, but only by incurring overtime pay that would cause her to be over budget for hourly wages paid. What would be the best course of action for the sales department and the production manager to undertake in this case? a. b. C. d. Accept the order and overrun the production manager's budget. Refuse the overtime and produce only what the production department is capable of while staying within the budget. Accept the order and ignore the effect on the production department budget when conducting the performance review. Charge the overtime to the sales department's budget.

The production manager of the Super T-shirt Company is responsible for the activity of her department and the costs associated with production. Super T adheres to a responsibility centered budget process, and the manager's performance is measured by how well she performs to budget. Recently, the dark horse team won the local college basketball tournament. As a result, the sales department, which operates as a profit center, received an order for 10,000 t-shirts, but only if they could be delivered in three days. The production manager said she could meet the schedule, but only by incurring overtime pay that would cause her to be over budget for hourly wages paid. What would be the best course of action for the sales department and the production manager to undertake in this case? a. b. C. d. Accept the order and overrun the production manager's budget. Refuse the overtime and produce only what the production department is capable of while staying within the budget. Accept the order and ignore the effect on the production department budget when conducting the performance review. Charge the overtime to the sales department's budget.

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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