FIX BOXES IN RED

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 $73,100 48,200 20,900 20,600 22,000 $184,800 $69,600 45,600 17,700 16,900 19,600 $169,400 Total costs Shaping Department-Seattle Finishing Department-Seattle Denver division San Diego division $158,500 211,500 678,300 722,200 $148,400 203,500 672,700 714,500 Additional overhead costs were incurred as follows: Seattle division production manager-actual costs $53,000, budget $50,500; vice president of production-actual costs $65,400, budget $64,000; president-actual costs $76,800, budget $74,100. 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 $133,500 108,800 Budget $129,900 105,500 To Cutting Department Manager-Seattle Division Controllable Costs: Budget Actual Indirect Labor 69600 73100 Indirect Materials 45600 48200 Maintenance 17700 20900 Utilities 16900 20600 Supervision