Problem 22-1A Responsibility accounting performance reports; controllable and budgeted costs LO P1 Billie Whitehorse, the plant manager of Travel Free'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 Whitehorse 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 Budget Actual Campers Raw materials Employee wages Dept. manager salary Supplies used Depreciation-Eq Utilities Building rent Office department costs TrailersCombined CampersTrailersCombined $195,400 $278,000 473,400 $195,200 $273,200 468,400 315,600 97,200 125,100 188,500 10,700 14,500 145,100 104,800 205,400 52,300 91,800 61,000 126,000 5,400 9,300 67,750 310,200 107,600 208,000 53,300 92,500 63,000 25,500 6,200 8,700 72,550 43,300 33,800 43,900 32,600 95,600 125,600 187,000 10,200 14,700 135,500 uip 4,800 5,400 50 4,500 5,800 72,550 67,7 Totals $516,250 $835,950 $ 1,352,200 $525,150 $839,950 $ 1,365,100 The office department's annual budget and its actual costs follow. Actual Plant manager salary Other office salaries Other office costs $ 86,000 87,000 44,500 5,000 26,700 31,400 135,500 145,100 Totals