Durham Company uses a responsibility reporting system. It has divisions in Denver, Seattle, and San Diego....
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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 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. Manufacturing Overhead Actual Budget Individual costs-Cutting Department-Seattle Indirect labor $73,500 $69,700 Indirect materials 48,100 45,700 Maintenance Utilities Supervision 20,700 17,800 19,900 16,800 22,400 20,000 $184,600 $170,000 Total costs Shaping Department-Seattle $157,900 $148.500 Finishing Department-Seattle- 210,800 203,500 Denver division San Diego division 678,100 672.500 722.500 715,500 Additional cube Et 99 * 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. Manufacturing Overhead Actual Budget Individual costs-Cutting Department-Seattle Indirect labor $73,500 $69,700 Indirect materials 48,100 45,700 Maintenance Utilities Supervision 20,700 17,800 19,900 16,800 22,400 20,000 $184,600 $170,000 Total costs Shaping Department-Seattle $157,900 $148.500 Finishing Department-Seattle- 210,800 203,500 Denver division San Diego division 678,100 672.500 722.500 715,500 Additional cube Et 99 *
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