Amarillo Corporation has four divisions: the assembly division, the processing division, the machining division, and the packing division. All four divisions are under the control of the vice president of manufacturing. Each division has a manager and several departments that are directed by supervisors. The chain of command runs downward from vice president to division manager to supervisor. The processing division is composed of the paint and finishing departments. The May responsibility reports for the supervisors of these departments follow.

	Budgeted*			Actual			Variance
Paint Department
Controllable costs
Raw materials	$	84,000		$	86,000		$	2,000	U
Labor		115,400			128,000			12,600	U
Repairs		9,600			7,740			1,860	F
Maintenance		5,200			4,920			280	F
Total	$	214,200		$	226,660		$	12,460	U
Finishing Department
Controllable costs
Raw materials	$	60,000		$	58,000		$	2,000	F
Labor		86,600			79,800			6,800	F
Repairs		5,660			6,340			680	U
Maintenance		3,360			4,100			740	U
Total	$	155,620		$	148,240		$	7,380	F

*Amarillo uses flexible budgets for performance evaluation.

Other pertinent cost data for May follow.

	Budgeted*			Actual
Cost data of other divisions
Assembly	$	760,000		$	748,600
Machining		580,000			592,800
Packing		829,900			811,400
Other costs associated with
Processing division manager		440,000			435,600
Vice president of manufacturing		256,000			266,120

*Amarillo uses flexible budgets for performance evaluation. Required

1. Prepare a responsibility report for the manager of the processing division.

2. Prepare a responsibility report for the vice president of manufacturing

3. Responsibility Report
   Vice President of Manufacturing
   For the Month Ended May 31
   Controllable costs	Budget	Actual	Variances
   Assembly division				Fselected answer correct
   Processing division				Uselected answer correct
   Machining division	580,000selected answer correct	592,800selected answer correct	12,800selected answer correct	Uselected answer correct
   Packing division	829,900selected answer correct	811,400selected answer correct	18,500selected answer correct	Fselected answer correct
   Other costs	256,000selected answer correct	266,120selected answer correct	10,120selected answer correct	Uselected answer correct
   Total	$3,235,720selected answer correct	$3,229,420selected answer correct		Fselected answer correct