Lance Prating is the controller of the Colchester manufacturing facility of Tech Systems Incorporated. Among the many reports that must be filed with corporate headquarters is the annual overhead performance report. The report covers the year that ends on December 31 and is due at corporate headquarters shortly after the beginning of the New Year. Prating does not like putting work off until the last minute, so just before Christmas, he put together a preliminary draft of the overhead performance report. Some adjustments would later be required for the few transactions that occur between Christmas and New Year’s Day. A copy of the preliminary draft report, which Prating completed on December 21, is shown below:
Tab Kapp, the general manager at the Colchester facility, asked to see a copy of the preliminary draft report at 4:45 P.M. on December 23. Prating carried a copy of the report to Kapp’s office, where the following discussion took place:
What should Lance Prating do? Explain.

  • CreatedJuly 08, 2015
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