Performance reports and evaluation The mortgage division of Thorn Financial Services, Inc., is managed by a vice president who supervises three regional operations. Each regional operation has a general manager and several branches directed by branch managers. The Bronson region has two branches, Gasden and Vance. The March responsibility reports for the managers of these branches follow.

Other pertinent cost data for March follow.

Required
a. Prepare a responsibility report for the general manager of the Bronson region.
b. Prepare a responsibility report for the vice president of the mortgage division.
c. Explain where the $24,000 favorable promotions variance in the Gasden branch manager's report is included in the vice president's report.
d. Based on the responsibility report prepared in Requirement a, explain where the Bronson region's general manager should concentrate her attention.

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Budgeted* Actual Variance Gasden Branch Controllable costs Employee compensation Office supplies $12,800 U 2,000 F 24,000 F 5,200 U $ 8,000 F $288,000 72,000 152,000 16,000 $528,000 $300,800 70,000 128,000 21,200 $520,000 Promotions Maintenance Total Vance Branch Controllable costs $10,000 F 8,000 U 6,000 U Employee compensation Office supplies Promotions $260,000 76,000 144,000 20,000 $500,000 $250,000 84,000 150,000 19,200 $503,200 Maintenance 800 F $ 3,200 U Total *Thorn uses flexible budgets for performance evaluation.