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problem: Billie Whitehorse, plant manager of Travel Free's Indiana plant, is responsible for all of that plant’s costs other than her own salary. The plant has two (2) operating sections & one service section. The camper & trailer operating sections manufacture different products & have their own managers. The office section, which Whitehorse also manages, provides services equally to the two operating sections. A budget is created for each operating section & the office section. The company’s responsibility accounting system must assemble information to present budgeted & actual costs in performance reports for each operating section manager & the plant manager. Each performance report includes only those costs that a particular operating section manager can control: raw materials, wages, supplies used, & equipment depreciation. The plant manager is responsible for the section managers' salaries, utilities, building rent, office salaries other than her own, & other office costs plus all costs controlled by the two operating section managers. The annual sectional budgets & actual costs for the two operating sections follow.

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