Question

Juan Rubio is the manager of the production department of Radison Corporation. Radison incurred the following costs during 2018:

Production department supplies	$	22,000
Administrative salaries		700,000
Production wages		1,160,000
Materials used		1,058,400
Depreciation on manufacturing equipment		723,200
Corporate-level rental expense		480,000
Property taxes		137,200
Sales salaries		573,600

Required

Prepare a list of expenditures that Mr. Rubio controls.

Controllable items	Amount
Total

Answer 1

CONTROLLABE ITEMS	AMOUNT
	$
Production department supplies	22,000.00
Production wages	1,160,000.00
Materials used	1,058,400.00
total	2,240,400.00
All other expenditures cannot be controlled by
production department.