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Durham Company uses a responsibility reporting system. It has divisions in Denver, Seattle, and San Diego. Each division has three production departments: Cutting Shaping, and
Durham 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 2020, controllable actual and budget manufacturing overhead cost data for the departments and divisions were as shown below. Actual Budget Manufacturing Overhead Individual costs-Cutting Department-Seattle Indirect labor Indirect materials Maintenance Utilities Supervision $73,400 48,200 20.600 20,600 22,500 $185,300 $69,800 45,900 17,900 16,900 19,900 $170,400 Total costs Shaping Department-Seattle Finishing Department-Seattle Denver division San Diego division $ 158,300 210,100 678,400 722,100 $149,000 204,300 673,400 714,500 Additional overhead costs were incurred as follows: Seattle division production manager-actual costs $52,600, budget $51,000; vice president of production-actual costs $65,300, budget $63.900: president-actual costs $75,900, budget $74,300. These expenses are not allocated. The vice presidents who report to the president, other than the vice president of production, had the following expenses. Vice President Marketing Finance Actual $133.100 108,900 Budget $129,500 104,500 (a) Prepare the Manufacturing overhead-Cutting Department manager-Seattle division responsibility report. To Cutting Department Manager-Seattle Division Controllable Costs: Budget Actual $ $ $
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