Question
PLEASE HELP WITH C Durham Company uses a responsibility reporting system. It has divisions in Denver, Seattle, and San Diego. Each division has three production
PLEASE HELP WITH C
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 | 48,100 | 46,000 | ||
Maintenance | 21,000 | 17,600 | ||
Utilities | 20,100 | 16,500 | ||
Supervision | 22,200 | 19,500 | ||
$184,400 | $169,300 |
Total costs | ||||
Shaping DepartmentSeattle | $158,400 | $148,400 | ||
Finishing DepartmentSeattle | 210,500 | 204,100 | ||
Denver division | 677,900 | 673,400 | ||
San Diego division | 722,500 | 715,400 |
Additional overhead costs were incurred as follows: Seattle division production manageractual costs $52,200, budget $50,800; vice president of productionactual costs $65,500, budget $64,100; presidentactual costs $76,300, budget $73,900. 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 | $134,100 | $129,500 | ||
Finance | 108,600 | 104,600 |
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