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Case Study 7 - Responsibility Accounting - Part 2

The document presents responsibility accounting reports for Hajer Corp's cost and profit centers for the first quarter of 2025. It details budgeted versus actual variable and fixed costs, highlighting variances for controllable costs. Additionally, it includes sales revenue figures, indicating a favorable performance in the profit center despite some unfavorable cost variances.

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ايهاب حسنى
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80 views2 pages

Case Study 7 - Responsibility Accounting - Part 2

The document presents responsibility accounting reports for Hajer Corp's cost and profit centers for the first quarter of 2025. It details budgeted versus actual variable and fixed costs, highlighting variances for controllable costs. Additionally, it includes sales revenue figures, indicating a favorable performance in the profit center despite some unfavorable cost variances.

Uploaded by

ايهاب حسنى
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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‫جامعة الملك‬

‫فيصل كلية‬
‫إدارة األعمال‬
‫قسم المحاسبة‬
Managerial Accounting Group work (Responsibility Accounting)
Dr. Shehabaddin Al-Dubai Second Semester 2024/2025
Name: Academic ID:

Part (1):
A Center in Hajer Corp reported the following data for the first quarter of 2025
Variable Costs
Indirect materials $40,000
Indirect labor 24,000
Utilities 20,000
Maintenance 12,000
Fixed Costs
Supervisor’s salary $80,000
Depreciation 16,000
Property taxes 8,000
Actual variable costs for the first quarter were:
Indirect materials $37,200
Indirect labor 26,400
Utilities 21,000
Maintenance 10,600

Actual fixed costs were as expected except for property taxes which were $9,000. All costs
are considered controllable by the department manager except for the supervisor’s salary.

Instructions
(1) Prepare a responsibility report for the manager. Assume the center is a cost center.
(2) Prepare a responsibility report for the manager. Assume the center is a profit center and its
budgeted and actual sales revenues are $150,000 and 170,000, respectively.
‫جامعة الملك‬
‫فيصل كلية‬
‫إدارة األعمال‬
‫قسم المحاسبة‬
Part (1):

Hajer CO.
Responsibility Report for Cost Center Manager For
the Quarter Ended March 31, 2025

Controllable costs Budget Actual Difference

Indirect materials $ 40,000 $ 37,200 $2,800 F


Indirect labor 24,000 26,400 2,400 U
Utilities 20,000 21,000 1,000 U
Maintenance 12,000 10,600 1,400 F
Depreciation 16,000 16,000 -
Property taxes 8,000 9,000 1,000 U
Total controllable costs
120,000 120,200 200 U

Part (2):

Hajer CO.
Responsibility Report for Profit Center Manager For
the Quarter Ended March 31, 2025

Budget Actual Difference


R 150,000 170,000 20,000 U
C

Indirect materials $ 40,000 $ 37,200 $2,800 F


Indirect labor 24,000 26,400 2,400 U
Utilities 20,000 21,000 1,000 U
Maintenance 12,000 10,600 1,400 F
C M 54,000 74,800 20,800 F
C F C

Depreciation 16,000 16,000 -


Property taxes 8,000 9,000 1,000 U
C M 30,000 49,800 19,800 F

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