Exercise 10-13 (Part Level Submission) Fultz Company’s organization chart includ

Question

Exercise 10-13 (Part Level Submission) Fultz 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 2014 are as follows. Finishing Department—Dallas: Direct materials $43,640 actual, $45,010 budget; direct labor $83,520 actual, $84,010 budget; manufacturing overhead $52,310 actual, $50,410 budget. Machining Department—Dallas: Total manufacturing costs $224,620 actual, $218,390 budget. Atlanta Plant: Total manufacturing costs $424,810 actual, $421,970 budget. Tucson Plant: Total manufacturing costs $495,580 actual, $497,880 budget. The Dallas plant manager’s office costs were $97,160 actual and $92,320 budget. The vice president of production’s office costs were $135,620 actual and $134,340 budget. Office costs are not allocated to departments and plants.

(c)

Prepare the reports in a responsibility system for: The vice president of production.

To Vice President—Production

Month: July

Controllable Costs:

Budget

Actual

Favorable F
Unfavorable U
Neither Favorable
nor Unfavorable N

            Total

To Vice President—Production

Month: July

Controllable Costs:

Budget

Actual

Favorable F
Unfavorable U
Neither Favorable
nor Unfavorable N

V P Production

$

$

$

FNU

Assembly plants: AtlantaDallasFinishingMachiningTucson

FUN

AtlantaDallasFinishingMachiningTucson

UFN

AtlantaDallasFinishingMachiningTucson

FUN

            Total

$

$

$

NUF

Explanation / Answer

Budget Actual Favorable / Unfavorable / Neither Favorable nor Unfavorable VP Production 134340 135620 Unfavorable Assembly Plants:     Dallas - Finishing : Direct Material 45010 43640 Favorable Direct Labor 84010 83520 Favorable Manufacturing Overhead 50410 52310 Unfavorable      Dallas - Machining 218390 224620 Unfavorable Atlanta 421970 424810 Unfavorable Tuscon 495880 495580 Favorable Dallas - Plant manager's office cost 92320 97160 Unfavorable Total 1542330 1557260 Unfavorable

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