In April, the vice president of sales of Petro Products asks the controller to prepare responsibility report
Question:
In April, the vice president of sales of Petro Products asks the controller to prepare responsibility report for the performance evaluation of the manager of its Division Y, which is organized into Sections A
and B.
The following cost items related to the operation of Division Y for the month of May, 19-- are presented by the controller:
ActualBudgeted
Item Cost Cost
Division Y costs:
Staff wages....................................................................................... $ 20,000$ 18,500
Supplies............................................................................................ 6,0004,800
Manager's salary.............................................................................. 8,0006,400
Other expenses................................................................................ 15,000 13,400
Total Division Y cost................................................................... $ 49,000$ 43,100
Administration cost allocable to Division Y........................................... $ 17,000$ 14,500
Unit outputCDivision Y.......................................................................... 10,00010,000
Section A costs:
Supervisor's salaryCSection A.......................................................... 8,0009,500
Employees' wagesCSection A:
Juracek........................................................................................ 2,0001,900
Molloy......................................................................................... 3,5003,600
Nienaber..................................................................................... 3,3003,250
Oats............................................................................................ 4,1004,050
Peterson..................................................................................... 5,8005,650
Washington................................................................................ 5,0005,000
Materials costCSection A................................................................. 4,5005,200
Indirect laborCSection A.................................................................. 7,8007,300
Other overhead costsCSection A..................................................... 18,000 19,600
Total Section A costs.................................................................. $ 62,000$ 65,050
Section B costs:
Supervisor's salaryCSection B.......................................................... $7,000$7,500
Employees' wagesCSection B:
Laurie.......................................................................................... 4,4004,350
Potash......................................................................................... 3,6003,800
Tillman........................................................................................ 2,1002,050
Other overhead costsCSection B..................................................... 15,000 14,500
Total Section B costs.................................................................. $ 32,100$ 32,200
Required:Prepare responsibility report for the month of May in a format suitable for evaluating the performance of Division Y's manager.
Expert Answer:
Here is a responsibility report for Division Y for the month of May evaluating the performance of th... View the full answer
