Becky Hoefer, the plant manager of Travel Far’s Indiana plant

Becky Hoefer, the plant manager of Travel Far’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 Hoefer 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

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Campers Trailers Combined Campers Trailers Combined
Raw materials $ 196,100 $ 276,600 $ 472,700 $ 194,700 $ 273,800 $ 468,500
Employee wages 105,050 205,600 310,650 106,600 206,800 313,400
Dept. manager salary 43,700 52,100 95,800 44,200 53,200 97,400
Supplies used 33,800 92,000 125,800 32,000 91,600 123,600
Depreciation—Equip. 61,500 125,500 187,000 61,800 126,000 187,800
Utilities 5,400 5,600 11,000 4,200 5,000 9,200
Building rent 5,700 10,200 15,900 5,600 9,100 14,700
Office department costs 65,750 65,750 131,500 72,550 72,550 145,100

Totals $ 517,000 $ 833,350 $ 1,350,350 $ 521,650 $ 838,050 $ 1,359,700

The office department’s annual budget and its actual costs follow.

Budget Actual
Plant manager salary $ 79,000 $ 89,000
Other office salaries 42,500 26,500
Other office costs 10,000 29,600

Totals $ 131,500 $ 145,100

Required:
1.
Prepare responsibility accounting performance reports that list costs controlled by the following. In each report, include the budgeted and actual costs and show the amount that each actual cost is over or under the budgeted amount. (Leave no cells blank – be certain to enter “0” wherever required. Negative amounts should be indicated by a minus sign. Omit the “$” sign in your response.)

a. Manager of the camper department.

Responsibility Accounting Performance Report
Manager, Camper Department
For the year
Budgeted
Amount Actual
Amount Over (Under)
Budget
Controllable Costs
$ $ $

Totals $ $ $

b. Manager of the trailer department.

Responsibility Accounting Performance Report
Manager, Trailer Department
For the year
Budgeted
Amount Actual
Amount Over (Under)
Budget
Controllable Costs
$ $ $

Totals $ $ $

c. Manager of the Indiana plant.

Responsibility Accounting Performance Report
Manager, Indiana Plant
For the year
Budgeted
Amount Actual
Amount Over (Under)
Budget
Controllable Costs
$ $ $