Durham Company uses a responsibility reporting system. It has divisions in Denver, Seattle, and San Diego. Each
Question:
In January 2014, controllable actual and budget manufacturing overhead cost data for the departments and divisions were as shown below.
Additional overhead costs were incurred as follows: Seattle division production manageractual costs $52,500, budget $51,000; vice president of productionactual costs $65,000, budget $64,000; presidentactual costs $76,400, budget $74,200. These expenses are not allocated.
The vice presidents who report to the president, other than the vice president of production, had the following expenses.
Instructions
(a) Using the format on page 453, prepare the following responsibility reports.
(1) Manufacturing overheadCutting Department managerSeattle division.
(2) Manufacturing overheadSeattle division manager.
(3) Manufacturing overheadvice president of production.
(4) Manufacturing overhead and expensespresident.
(b) Comment on the comparative performances of:
(1) Department managers in the Seattle division.
(2) Division managers.
(3) Vicepresidents.
Step by Step Answer:
Accounting Principles
ISBN: 9781118566671
11th Edition
Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso