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 $42,830 actual, $46,990 budget; direct labor $83,560 actual, $81,740 budget; manufacturing overhead $52,460 actual, $51,820 budget.
Machining Department - Dallas: total manufacturing costs $220,890 actual, $216,180 budget.
Atlanta Plant: total manufacturing costs $422,900 actual, $422,020 budget.
Tucson Plant: total manufacturing costs $494,360 actual, $497,570 budget.
The Dallas plant manager's office costs were $96,740 actual and $93,590 budget. The vice president of production's office costs were $135,800 actual and $130,420 budget. Office costs are not allocated to departments and plants.
Prepare the reports in a responsibility system for:
A) The Finishing Department?Dallas.
B) The plant manager - Dallas
C) The vice president of production.
Variance is also called deviation or difference. Variations are used to determine the divergence between actual performance and the standard performance of the company. The effect of favorable or unfavorable represents the changes in performance.
Answer and Explanation:
A) Responsibility report for finishing department--Dallas.
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