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Marsha Hansen, the manager of the Flint Plant of the Michigan Company is responsible for all of the plant's costs except her own salary. There are two operating departments within the plant, Departments A and B. Each department has its own manager. There is also a maintenance department that provides services equally to the two operating departments. The following information is available.
Department managers are responsible for the wages and supplies in their department. They are not responsible for their own salary. Building rent, utilities, and maintenance are allocated to each department based on square footage.
Required: Complete the responsibility accounting performance reports below that list costs controllable by the manager of Department A, the manager of Department B, and the manager of the Flint plant.
Resell
The act of selling a product or service that one has bought to another buyer.
Pay
To give money in exchange for goods, services, or to settle a debt.
Perfect Tender Rule
A rule requiring the seller to deliver goods to the buyer that exactly meet the terms of the contract, without any deviation.
Defective
A condition wherein a product does not operate as intended or expected, often leading to a potential hazard or inefficiency.
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