Arctica manufactures snowmobiles and ATVs. These products are made in different departments, and each department...

80.2K

Verified Solution

Question

Accounting

Arctica manufactures snowmobiles and ATVs. These products are made in different departments, and each department has its own manager. Each responsibility performance report only includes those costs that the particular department manager can control: raw materials, wages, supplies used, and equipment depreciation.

image

Raw materials Employee wages Dept. manager salary Supplies used Depreciation-Equip. Utilities Rent Snowmobile $20,700 11,600 5,500 4,620 7,200 480 6,900 $57,000 Budget ATV $28,700 21,700 6,400 1,020 13,700 660 7,500 $ 79,680 Combined $ 49,400 33,300 11,900 5,640 20,900 1,140 14,400 $136,680 Snowmobile $20,620 11,980 5,600 4,370 7,200 450 6,500 $56,720 Actual ATV Combined $30, 140 $ 50,760 22,560 34,540 5,600 11,200 1,050 5,420 13,700 20,900 620 1,070 7,500 14,000 $81,170 $137,890 Totals Prepare a responsibility accounting report for the ATV department. (Under budget amounts should be indicated by a minus sign.) Responsibility Accounting Performance Report Dept. Manager, ATV Department For the Year Budgeted Amount Actual Amount Over (Under) Budget Controllable Costs: Raw materials 50,760 $ 1,360 49,400 $ 33,300 Employee wages Supplies used DepreciationEquipment Totals $ 82,700 50,760 $ 1,360

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students