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. Snowmobile ATV Combined Snowmobile ATV Combined
(Budget) (Budget) (Budget) (Actual) (Actual) (Actual)
Raw materials $19,990 $28,000 $47,990 $19,920 $29,320 $49,240
Employee wages 10,900 21,000 31,900 11,210 21,740 32,950
Dept. manager salary 4,800 5,700 10,500 4,900 4,900 9,800
Supplies used 3,850 1,400 5,250 3,670 1,420 5,090
Depreciation- Equip. 6,500 13,000 19,500 6,500 13,000 19,500
Utilities 410 590 1,000 380 550 930
Rent 6,200 6,800 13,000 5,800 6,800 12,600
Totals $52,650 $76,490 $129,148 $52,380 $77,730 $130,110
Prepare a responsibility accounting report for the snowmobile department.
Responsibility Accounting Performance Report
Dept Manager, Snowmobile Department
For the Year
Budgets Amount Actual Amount Over (Under) Budget
Controllable Costs
Raw materials
Employee wages
Supplies used
Depreciation-Equipment
Totals