Baird 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 $ 44,000 $ 45,200 $ 1,200 U Labor 57,900 64,400 6,500 U Repairs 5,000 4,050 950 F Maintenance 2,800 2,640 160 F Total $ 109,700 $ 116,290 $ 6,590 U Finishing Department Controllable costs Raw materials $ 32,000 $ 30,800 $ 1,200 F Labor 43,700 40,100 3,600 F Repairs 2,930 3,290 360 U Maintenance 1,800 2,210 410 U Total $ 80,430 $ 76,400 $ 4,030 F

*Baird uses flexible budgets for performance evaluation. Other pertinent cost data for May follow.

Budgeted* Actual Cost data of other divisions Assembly $ 381,000 $ 374,500 Machining 291,000 298,400 Packing 415,950 405,900 Other costs associated with Processing division manager 220,400 218,000 Vice president of manufacturing 129,000 134,560 *Baird uses flexible budgets for performance evaluation.

Required

A. Prepare a responsibility report for the manager of the processing division.. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

Responsibility Report
Processing Division Manager
For the Month Ended May 31
Controllable costs	Budget	Actual	Variances
Paint department
Finishing department
Other costs
Total

B. Prepare a responsibility report for the vice president of manufacturing. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

Responsibility Report
Vice President of Manufacturing
For the Month Ended May 31
Controllable costs	Budget	Actual	Variances
Assembly division
Processing division
Machining division
Packing division
Other costs
Total