Arctica manufactures snowmobiles and ATVs. These products are made in different departments, and each department has...
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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 $ 20,590 11, 500 5, 400 4, 510 470 6,800 $ 49,270 ATV $ 28, 600 21, 600 6,300 1, 010 650 7,400 $ 65,560 Actual Snowmobile $ 20,520 11,870 5,500 4, 270 440 6,400 $ 49,000 ATV $30,030 22,450 5,500 1,070 610 7,400 $ 67,060 Prepare a responsibility accounting performance report for the snowmobile department. (Under budget amounts should be indicated by a minus sign.) 2. Renata Company has four departments: Materials, Personnel, Manufacturing, and Packaging. Information follows. Employees Square Feet Asset Values $ 14,000 1,400 35,000 19,600 $ 70,000 Department Materials Personnel Manufacturing Packaging Total 20 10 40 30 100 40,000 10,000 120,000 30,000 200,000 The four departments share the following indirect expenses for supervision, utilities, and insurance according to their allocation bases. Cost Allocation Base Indirect Expense Supervision Utilities Insurance $ 83,500 Number of employees 60,000 Square feet occupied 27,500 Asset values Total $ 171,000 Allocate each of the three indirect expenses to the four departments. 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 $ 20,590 11, 500 5, 400 4, 510 470 6,800 $ 49,270 ATV $ 28, 600 21, 600 6,300 1, 010 650 7,400 $ 65,560 Actual Snowmobile $ 20,520 11,870 5,500 4, 270 440 6,400 $ 49,000 ATV $30,030 22,450 5,500 1,070 610 7,400 $ 67,060 Prepare a responsibility accounting performance report for the snowmobile department. (Under budget amounts should be indicated by a minus sign.) 2. Renata Company has four departments: Materials, Personnel, Manufacturing, and Packaging. Information follows. Employees Square Feet Asset Values $ 14,000 1,400 35,000 19,600 $ 70,000 Department Materials Personnel Manufacturing Packaging Total 20 10 40 30 100 40,000 10,000 120,000 30,000 200,000 The four departments share the following indirect expenses for supervision, utilities, and insurance according to their allocation bases. Cost Allocation Base Indirect Expense Supervision Utilities Insurance $ 83,500 Number of employees 60,000 Square feet occupied 27,500 Asset values Total $ 171,000 Allocate each of the three indirect expenses to the four departments.
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