Chapter 24, Problem 2E

Exercise 24-2

Responsibility accounting report-cost center P1

Refer to the information in Exercise 24-1 and prepare a responsibility accounting report for the ATV department.

Exercise 24-1

Responsibility accounting report-cost center

P1

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. Using the data below, prepare a responsibility accounting report for the snowmobile department.