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	$	52,000			$	54,000			$	2,000	U
Labor		58,700				66,000				7,300	U
Repairs		5,800				4,770				1,030	F
Maintenance		3,600				3,360				240	F
Total	$	120,100			$	128,130			$	8,030	U
Finishing Department
Controllable costs
Raw materials	$	40,000			$	38,000			$	2,000	F
Labor		45,300				40,900				4,400	F
Repairs		3,330				3,770				440	U
Maintenance		2,280				2,850				570	U
Total	$	90,910			$	85,520			$	5,390	F

*Munoz uses flexible budgets for performance evaluation.

Other pertinent cost data for May follow.

	Budgeted*				Actual
Cost data of other divisions
Assembly	$	385,000			$	375,300
Machining		295,000				306,400
Packing		419,950				406,700
Other costs associated with
Processing division manager		222,000				219,600
Vice president of manufacturing		133,000				140,560

*Munoz uses flexible budgets for performance evaluation.

Required

1. Prepare a responsibility report for the manager of the processing division.

2. Prepare a responsibility report for the vice president of manufacturing.