URGENT, please help as soon as possible Problem 22-1B Responsibility accounting performance reports; controllable and budgeted costs P1 Britney Brown is the plant manager of GT Co.'s Chicago plant. The Refrigerator and Dishwasher operating departments manufacture products and have their own managers. The Office department, which Brown also manages, provides services equally to the two operating departments. Each performance report includes only those costs that a particular operating department manager can control: direct materials, direct labor, supplies used, and utilities. The plant manager is responsible for the department managers' salaries, building rent, office salaries other than her own, and other office costs plus all costs controlled by the two operating department managers. Page 896 The April departmental budgets and actual costs for the two operating departments follow. Budgeted Actual For Month Ended April 30 Refrigerators Dishwashers Refrigerators Dishwashers Direct materials $400,000 $200,000 $385,000 $202,000 Direct labor 170,000 80,000 174,700 81,500 Department manager 55,000 49,000 55,000 46,500 salaries Supplies used 15,000 9,000 14,000 9,700 Utilities 30,000 18,000 34,500 20,700 Building 63,000 17,000 65,800 16,500 Office department 70,500 70,500 75,000 75,000 costs Totals $803,500 $443,500 $804,000 $451,900 Table Summary. A table rent 3 The Office department's budgeted and actual costs follow. For Month Ended April 30 Budgeted Actual Plant manager $ 80,000 $85,000 salary Other office salaries 40,000 35,200 Other office costs 21,000 29,800 Totals $141,000 $150,000 Required Prepare responsibility accounting performance reports like those in Exhibit 22.2 that list costs controlled by the following a. Manager of Refrigerator department. Check (1a) $6,800 total under budget Manager of Dishwasher department. c. Manager of Chicago plant. (1c) Chicago plant controllable costs, $3,900 total over budget Analysis Component 2. Did the plant manager or one of the operating department managers best control costs? Responsibly Accounting Performance Report Dept Manager, Camper Department ts For the Year Budget Amount Actual Amounts Over (under) Budest et controllable costs Raw Materials 195.000 194,200 Employee Wages 104,000 106,600 2,600 Supplies Used 33.000 31,700 (1,300) Depreciation Equipment 50.000 50,000 Totals 392.000 392.500 500 (800) Responsibly Accounting Performance Report Dept Manager, Trailer Department For the Year Budget Amount Actual Amounts Over (under) Budget Controllable costs Raw Materials 275.000 273,200 11,800) Employee Wages 205,000 206.400 1,400 Supplies Used 90,000 91.500 1,600 Depreciation Equipment 125.000 125,000 Totals 695,000 696,200 1,200 Responsibly Accounting Performance Report Plant Manager, Indiana Plant For the Year Budget Amount Actual Amounts Over (under) B. dt Controllable Costs Dept Manager Salaries 95.000 97,500 2,500 Utilities 9,000 8,300 17001 Building Rent 15,000 14,000 (1,000) Other Office Salaries 32.500 30,100 12,400) Other Office Costs 25,000 23,000 12,000) Camper Department 392.000 392,500 500 The budget of controllable costs of each Trailer Department 595.000 695,200 1,200 operating department Totals 1,263,500 1,261,600 (1,900) 3 Who better managed costs? The Plant Manager - only actual costs below budget