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 costsCutting DepartmentSeattle
Indirect labor		$73,000		$69,700
Indirect materials		48,200		45,800
Maintenance		20,700		17,800
Utilities		20,100		16,800
Supervision		22,400		19,900
		$184,400		$170,000

Total costs
Shaping DepartmentSeattle		$157,700		$148,000
Finishing DepartmentSeattle		210,000		203,600
Denver division		678,300		672,700
San Diego division		721,900		715,000

Additional overhead costs were incurred as follows: Seattle division production manageractual costs $52,500, budget $51,000; vice president of productionactual costs $65,000, budget $63,500; presidentactual costs $76,700, 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		Actual		Budget
Marketing		$133,200		$129,700
Finance		109,300		104,900

To President							Month: January
Controllable Costs:		Budget		Actual		Favorable Unfavorable Neither Favorable nor Unfavorable
President		$		$		$	UnfavorableNeither Favorable nor UnfavorableFavorable
Vice-Presidents:
CuttingDenverFinanceFinishingMarketingProductionSan DiegoSeattleShapingDirect LaborIndirect LaborDirect MaterialsIndirect MaterialsMaintenancePresidentSeattle Division Production ManagerSupervisionUtilitiesVice President of Production							UnfavorableNeither Favorable nor UnfavorableFavorable
CuttingDenverFinanceFinishingMarketingProductionSan DiegoSeattleShapingDirect LaborIndirect LaborDirect MaterialsIndirect MaterialsMaintenancePresidentSeattle Division Production ManagerSupervisionUtilitiesVice President of Production							Neither Favorable nor UnfavorableFavorableUnfavorable
CuttingDenverFinanceFinishingMarketingProductionSan DiegoSeattleShapingDirect LaborIndirect LaborDirect MaterialsIndirect MaterialsMaintenancePresidentSeattle Division Production ManagerSupervisionUtilitiesVice President of Production							FavorableNeither Favorable nor UnfavorableUnfavorable
Total		$		$		$	FavorableUnfavorableNeither Favorable nor Unfavorable