Munoz Corporation has four divisions: the assembly division, the processing division, the machining division, and the packing division. All four divisions are under the control of the vice president of manufacturing. Each division has a manager and several departments that are directed by supervisors. The chain of command runs downward from vice president to division manager to supervisor. The processing division is composed of the paint and finishing departments. The May responsibility reports for the supervisors of these departments follow. Budgeted* Actual Variance Paint Department Controllable costs Raw materials Labor $ 52,000 58,700 $ 54,000 5,800 4,770 Repairs Maintenance Total Finishing Department Controllable costs Raw materials Labor Repairs Maintenance Total 3,600 $120,100 66,000 3,360 $128,130 $ 2,000 U 7,300 U 1,030 F 240 F $ 8,030 U $ 40,000 $ 38,000 45,300 3,330 2,280 40,900 3,770 2,850 $ 2,000 F 4,400 F 440 U 570 U $ 90,910 $ 85,520 $ 5,390 F *Munoz uses flexible budgets for performance evaluation. Other pertinent cost data for May follow. Cost data of other divisions Assembly Machining Packing Other costs associated with Processing division manager Vice president of manufacturing Budgeted* Actual $385,000 $375,300 295,000 306,400 419,950 406, 700 222,000 219,600 133,000 140,560 *Munoz uses flexible budgets for performance evaluation.