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. Raw materials Employee wages Dept. manager salary sed Depreciation-Equip. Utilities Building rent Office department costs Totals Budget Actual Campers Trailers Combined Campers Trailers Combined $ 196,000 $ 277,800 $ 473,800 $ 194,700 $ 274,400 $ 469,100 105,300 205,600 310,900 106,800 207,400 314,200 44,100 52,000 96,100 44,100 53,200 97,300 200 125,500 187,500 61,200 126,500 187,700 3,600 6,200 9,800 3,300 5,900 9,200 5,400 9,000 14,400 5,200 8,600 13,800 66,750 66,750 133,500 67,550 67,550 135, 100 516,350 $ 833, 050 $ 1,349,400 515,750 835,450 $ 1,351,200 62,000 The office department's annual budget and its actual costs follow. Plant manager salary Other office salaries Other office costs Totals Budget Actual $ 86,000 $ 98,000 38,500 25,700 9,000 11,400 $ 133,500 $ 135, 100 Required: 1. Prepare responsibility accounting performance reports 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. Reg 1A Reg 1B Req 1C Prepare responsibility accounting performance reports that list controllable costs. In each report, include the budgeted and actual costs and show the amount that each actual cost is over or under the budgeted amount for manager of the Camper department. (Under budget amounts should be indicated by a minus sign.) Responsibility Accounting Performance Report Dept. Manager, Camper Department For the Year Budgeted Actual Over (Under) Amount Amount Budget Controllable Costs Totals Req 1A Req 1B >