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 2012, 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		$73,010		$69,740
Indirect materials		48,060		45,950
Maintenance		20,690		17,710
Utilities		20,350		16,750
Supervision		22,160		19,740
		$184,270		$169,890

Total costs
Shaping DepartmentSeattle		$157,640		$148,500
Finishing DepartmentSeattle		210,180		204,470
Denver division		676,220		672,570
San Diego division		722,320		714,510

Additional overhead costs were incurred as follows: Seattle division production manageractual costs $52,320, budget $50,710; vice president of productionactual costs $65,310, budget $63,510; presidentactual costs $76,030, budget $74,490. 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		$133,350		$130,260
Finance		108,890		104,590

(a1)

	Your answer is correct.

Prepare the following Manufacturing overheadCutting Department managerSeattle division responsibility reports.

To Cutting Department ManagerSeattle Division				Month: January
Controllable Costs:	Budget	Actual	Favorable F Unfavorable U Neither Favorable nor Unfavorable N
Direct LaborDirect MaterialsFinishing Department SeattleIndirect LaborIndirect MaterialsMaintenancePresidentSeattle Division Production ManagerShaping Department SeattleSupervisionUtilitiesVice President of Production	$	$	$	UFN
Direct LaborDirect MaterialsFinishing Department SeattleIndirect LaborIndirect MaterialsMaintenancePresidentSeattle Division Production ManagerShaping Department SeattleSupervisionUtilitiesVice President of Production				FNU
Direct LaborDirect MaterialsFinishing Department SeattleIndirect LaborIndirect MaterialsMaintenancePresidentSeattle Division Production ManagerShaping Department SeattleSupervisionUtilitiesVice President of Production				NFU
Direct LaborDirect MaterialsFinishing Department SeattleIndirect LaborIndirect MaterialsMaintenancePresidentSeattle Division Production ManagerShaping Department SeattleSupervisionUtilitiesVice President of Production				UNF
Direct LaborDirect MaterialsFinishing Department SeattleIndirect LaborIndirect MaterialsMaintenancePresidentSeattle Division Production ManagerShaping Department SeattleSupervisionUtilitiesVice President of Production				FUN
Total	$	$	$	UNF

Click if you would like to Show Work for this question:

Open Show Work

LINK TO TEXT

Attempts: 3 of 5 used

(a2)

	Your answer is correct.

Prepare the following Manufacturing overheadSeattle division manager responsibility reports.

To Division Production ManagerSeattle				Month: January
Controllable Costs:	Budget	Actual	Favorable F Unfavorable U Neither Favorable nor Unfavorable N
Seattle Division	$	$	$	NFU
Departments:
CuttingDenverFinanceFinishingMarketingProductionSan DiegoSeattleShaping				FNU
CuttingDenverFinanceFinishingMarketingProductionSan DiegoSeattleShaping				FUN
CuttingDenverFinanceFinishingMarketingProductionSan DiegoSeattleShaping				FNU
Total	$	$	$	UNF

Click if you would like to Show Work for this question:

Open Show Work

LINK TO TEXT

Attempts: 4 of 5 used

(a3)

	Your answer is correct.

Prepare the following Manufacturing overheadvice president of production responsibility reports.

To Vice PresidentProduction				Month: January
Controllable Costs:	Budget	Actual	Favorable F Unfavorable U Neither Favorable nor Unfavorable N
V-P Production	$	$	$	NUF
Divisions:
CuttingDenverFinanceFinishingMarketingProductionSan DiegoSeattleShaping				UFN
CuttingDenverFinanceFinishingMarketingProductionSan DiegoSeattleShaping				NFU
CuttingDenverFinanceFinishingMarketingProductionSan DiegoSeattleShaping				NFU
Total	$	$	$	FUN

Click if you would like to Show Work for this question:

Open Show Work

LINK TO TEXT

Attempts: 4 of 5 used

(a4)

	Your answer is correct.

Prepare the following Manufacturing overhead and expensespresident responsibility reports.

To President				Month: January
Controllable Costs:	Budget	Actual	Favorable F Unfavorable U Neither Favorable nor Unfavorable N
President	$	$	$	UNF
Vice-Presidents:
CuttingDenverFinanceFinishingMarketingProductionSan DiegoSeattleShaping				NUF
CuttingDenverFinanceFinishingMarketingProductionSan DiegoSeattleShaping				FUN
CuttingDenverFinanceFinishingMarketingProductionSan DiegoSeattleShaping				UFN
Total	$	$	$	UNF

Click if you would like to Show Work for this question:

Open Show Work