Bush Company’s organization chart includes the president; the vice president of production; three assembly plants—New Orleans, Houston, and Mobile; and two departments within each plant—Machining and Finishing. Budget and actual manufacturing cost data for July 2012 are as follows:
Finishing Department—New Orleans: Direct materials $41,500 actual, $45,000 budget; direct labor $83,000 actual, $82,000 budget; manufacturing overhead $51,000 actual, $49,200 budget.
Machining Department—New Orleans: Total manufacturing costs $220,000 actual, $216,000 budget.
Houston Plant: Total manufacturing costs $424,000 actual, $421,000 budget.
Mobile Plant: Total manufacturing costs $494,000 actual, $496,500 budget.
The New Orleans plant manager’s office costs were $95,000 actual and $92,000 budget. The vice president of production’s office costs were $132,000 actual and $130,000 budget. Office costs are not allocated to departments and plants.
Instructions
Using the format on page 1113, prepare the reports in a responsibility system for:
(a) The Finishing Department—New Orleans.
(b) The plant manager—New Orleans.
(c) The vice president of production.