Answer Happy

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 laber, 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 Aprit 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 rent 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 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 L. 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 b. Manager of Dishwasher department c. Manager of Chicago plant. (1) 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?