Becky Hoefer, the plant manager of Travel Far€™s Indiana plant, is responsible for all of that plant€™s costs other than her own salary. The plant has two operating departments and one service department. The camper and trailer operating departments manufacture different products and have their own managers. The office department, which Hoefer also manages, provides services equally to the two operating departments. A budget is prepared for each operating department and the office department. The company€™s responsibility accounting system must assemble information to present budgeted and actual costs in performance reports for each operating department manager and the plant manager. Each performance report includes only those costs that a particular operating department manager can control: raw materials, wages, supplies used, and equipment depreciation. The plant manager is responsible for the department managers€™ salaries, utilities, building rent, office salaries other than her own, and other office costs plus all costs controlled by the two operating department managers. The annual departmental budgets and actual costs for the two operating departments follow.

The office department€™s annual budget and its actual costs follow.

Required
1. Prepare responsibility accounting performance reports like those in Exhibit 21.28 that list costs controlled by the following:
a. Manager of the camper department.
b. Manager of the trailer department.
c. Manager of the Indiana plant.
In each report, include the budgeted and actual costs and show the amount that each actual cost is over or under the budgeted amount.
Analysis Component
2. Did the plant manager or the operating department managers better manage costs?Explain.

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Budget Actual Campers Trailers Combined Campers Trailers Combined Employee wages Dept manager salary4 Supplies used.. Depreclation-Equlp...4. Utilities Building rent ..5,000 8,03 12.000 Office department costs56,000 56,000 112,000544054450 108.900 Totals....$454800 $746.200 $1,201,000 $454.550 $747.250 $1,201,800 99,000 91,000 290,000 102.300 93700 296,000 40,000 44.000 34,000 83,000 7,000 3900 84600 116,500 58,000 0,000 68,000 58.000 110,000 68,000 84,000 47000 88.000 2.800 420 7,000 2700 3,800 13,000 4800 7200 6.500 Budget Actual Plant manager salary.. 60,000 62.000 30,000 27.700 19.200 $12.000 $108,900 Other office salaries 22.000 Totals...