Question

Fey Company’s organization chart includes the president; the vice president of production; three assembly plants—Dallas, Atlanta,...

Fey Company’s organization chart includes the president; the vice president of production; three assembly plants—Dallas, Atlanta, and Tucson; and two departments within each plant—Machining and Finishing. Budget and actual manufacturing cost data for July 2017 are as follows.

Finishing Department—Dallas: direct materials $42,750 actual, $48,120 budget; direct labor $84,900 actual, $84,180 budget; manufacturing overhead $52,750 actual, $51,380 budget.

Machining Department—Dallas: total manufacturing costs $221,400 actual, $217,150 budget.

Atlanta Plant: total manufacturing costs $424,430 actual, $423,180 budget.

Tucson Plant: total manufacturing costs $497,000 actual, $496,480 budget.

Prepare the reports in a responsibility system for:

A)The Finishing Department—Dallas.

B) The plant manager - Dallas

C) The vice president of production.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

SOLUTION:

To Dallas Department Manager—Finishing
Controllable Costs Budget Actual Favorable/ Unfavorable
Direct Materials 48,120 42,750 (5,370) Favorable
Direct Labor 84,180 84,900 720 Unfavorable
Manufacturing Overhead 51,380 52,750 1,370 Unfavorable
Total 183,680 180,400 (3,280) Favorable
To Assembly Plant Manager—Dallas
Controllable Costs Budget Actual Favorable/ Unfavorable
Dallas Office
Departments: 94,090 96,390 (2,300) Unfavorable
Machining 217,150 221,400 (4,250) Unfavorable
Finishing 183,680 180,400 3,280 Favorable
Total 494,920 498,190 (3,270) Unfavorable
To Vice President—Production
Controllable Costs Budget Actual Favorable/ Unfavorable
V P Production 130,120 135,210 (5,090) Unfavorable
Assembly plants:
Dallas 494,920 498,190 (3,270) Unfavorable
Atlanta 423,180 424,430 (1,250) Unfavorable
Tucson 496,480 497,000 (520) Unfavorable
Total 1,544,700 1,554,830 (10,130) Unfavorable
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Fey Company’s organization chart includes the president; the vice president of production; three assembly plants—Dallas, Atlanta,...
Fey Company’s organization chart includes the president; the vice president of production; three assembly plants—Dallas, Atlanta, and Tucson; and two departments within each plant—Machining and Finishing. Budget and actual manufacturing cost data for July 2017 are as follows. Finishing Department—Dallas: direct materials $41,050 actual, $44,680 budget; direct labor $83,110 actual, $83,870 budget; manufacturing overhead $52,120 actual, $51,130 budget. Machining Department—Dallas: total manufacturing costs $220,130 actual, $216,870 budget. Atlanta Plant: total manufacturing costs $424,810 actual, $422,130 budget. Tucson Plant: total manufacturing...
Durham Company uses a responsibility reporting system. It has divisions in Denver, Seattle, and San Diego....
Durham Company uses a responsibility reporting system. It has divisions in Denver, Seattle, and San Diego. Each division has three production departments: Cutting, Shaping, and Finishing. The responsibility for each department rests with a manager who reports to the division production manager. Each division manager reports to the vice president of production. There are also vice presidents for marketing and finance. All vice presidents report to the president. In January 2020, controllable actual and budget manufacturing overhead cost data for...
“Blast it!” said David Wilson, president of Teledex Company. “We’ve just lost the bid on the...
“Blast it!” said David Wilson, president of Teledex Company. “We’ve just lost the bid on the Koopers job by $4,000. It seems we’re either too high to get the job or too low to make any money on half the jobs we bid.” Teledex Company manufactures products to customers’ specifications and operates a job order costing system. Manufacturing overhead cost is applied to jobs on the basis of direct labor cost. The following estimates were made at the beginning of...
"Don't tell me we've lost another bid!" exclaimed Sandy Kovallas, president of Lenko Products, Inc. "I'm...
"Don't tell me we've lost another bid!" exclaimed Sandy Kovallas, president of Lenko Products, Inc. "I'm afraid so," replied Doug Martin, the operations vice president. "One of our competitors underbid us by about $9,800 on the Hastings job." "I just can’t figure it out," said Kovallas. "It seems we’re either too high to get the job or too low to make any money on half the jobs we bid anymore. What’s happened?"      Lenko Products manufactures specialized goods to customers'...
"Don't tell me we've lost another bid!" exclaimed Sandy Kovallas, president of Lenko Products, Inc. "I'm...
"Don't tell me we've lost another bid!" exclaimed Sandy Kovallas, president of Lenko Products, Inc. "I'm afraid so," replied Doug Martin, the operations vice president. "One of our competitors underbid us by about $10,100 on the Hastings job." "I just can’t figure it out," said Kovallas. "It seems we’re either too high to get the job or too low to make any money on half the jobs we bid anymore. What’s happened?"      Lenko Products manufactures specialized goods to customers'...
"Don't tell me we've lost another bid!" exclaimed Sandy Kovallas, president of Lenko Products, Inc. "I'm...
"Don't tell me we've lost another bid!" exclaimed Sandy Kovallas, president of Lenko Products, Inc. "I'm afraid so," replied Doug Martin, the operations vice president. "One of our competitors underbid us by about $9,800 on the Hastings job." "I just can’t figure it out," said Kovallas. "It seems we’re either too high to get the job or too low to make any money on half the jobs we bid anymore. What’s happened?"      Lenko Products manufactures specialized goods to customers'...
“Don’t tell me we have lost another bid!” exclaimed Roha, president of Rohami Sdn Bhd. “I’m...
“Don’t tell me we have lost another bid!” exclaimed Roha, president of Rohami Sdn Bhd. “I’m afraid so,” replied Ramy, the operation vice president. “One of our competitors underbid us by about RM10,000 on the RR2 job.” “I just can’t figure it out,” said Roha. “It seems we are either too high to get the job or too low to make any money on half the jobs we bid any more. What’s happened?” Roha Sdn Bhd manufactures specialized goods to...
Ultease Corporation has many production plants across the midwestern United States. A newly opened plant, the...
Ultease Corporation has many production plants across the midwestern United States. A newly opened plant, the Bellingham plant, produces and sells one product. The plant is treated, for responsibility accounting purposes, as a profit center. The unit standard costs for a production unit, with overhead applied based on direct labor hours, are as follows. Manufacturing costs (per unit based on expected activity of 24,000 units or 36,000 direct labor hours): Direct materials (2 pounds at $20) $ 40.00 Direct labor...
The Gilster Company, a machine tooling firm, has several plants. One plant, located in St. Falls,...
The Gilster Company, a machine tooling firm, has several plants. One plant, located in St. Falls, Minnesota, uses a job order costing system for its batch production processes. The St. Falls plant has two departments through which most jobs pass. Plantwide overhead, which includes the plant manager’s salary, accounting personnel, cafeteria, and human resources, is budgeted at $200,000. During the past year, actual plantwide overhead was $185,000. Each department’s overhead consists primarily of depreciation and other machine-related expenses. Selected budgeted...
The Gilster Company, a machine tooling firm, has several plants. One plant, located in St. Falls,...
The Gilster Company, a machine tooling firm, has several plants. One plant, located in St. Falls, Minnesota, uses a job order costing system for its batch production processes. The St. Falls plant has two departments through which most jobs pass. Plantwide overhead, which includes the plant manager’s salary, accounting personnel, cafeteria, and human resources, is budgeted at $200,000. During the past year, actual plantwide overhead was $185,000. Each department’s overhead consists primarily of depreciation and other machine-related expenses. Selected budgeted...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT