Nieto Company uses a responsibility reporting system. It has divisions in Denver, Seattle, and San Diego. Each

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Nieto Company uses a responsibility reporting system. It has divisions in Denver, Seattle, and San Diego. Each division has three production departments: Cutting, Shaping, and Finishing. The responsibility for each department rests with a manager who reports to the division production manager. Each division manager reports to the vice president of production. There are also vice presidents for marketing and finance. All vice presidents report to the president.In January 2010, controllable actual and budget manufacturing overhead cost data for the departments and divisions were as shown below.

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Additional overhead costs were incurred as follows: Seattle division production manager??actual costs $52,500, budget $51,000; vice president of production??actual costs $65,000, budget $64,000; president??actual 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.

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Instructions(a) Using the format on page 1076, prepare the following responsibility reports.(1) Manufacturing overhead??Cutting Department manager??Seattle division.(2) Manufacturing overhead??Seattle division manager.(3) Manufacturing overhead??vice president of production.(4) Manufacturing overhead and expenses??president.(b) Comment on the comparative performances of:(1) Department managers in the Seattle division.(2) Division managers.(3) Vicepresidents.

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