Problem 10-6A from Weygandt, Managerial Accounting, 7e

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 2017, 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		$70,000
Indirect materials		47,900		46,000
Maintenance		20,500		18,000
Utilities		20,100		17,000
Supervision		22,000		20,000
		$183,500		$171,000

Total costs
Shaping DepartmentSeattle		$158,000		$148,000
Finishing DepartmentSeattle		210,000		205,000
Denver division		678,000		673,000
San Diego division		722,000		715,000

Additional overhead costs were incurred as follows: Seattle division production manageractual costs $52,500, budget $51,000; vice president of productionactual costs $65,000, budget $64,000; presidentactual costs $76,400, budget $74,200. 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		$133,600		$130,000
Finance		109,000		104,000

Prepare the Manufacturing overheadCutting Department managerSeattle division responsibility report.

Prepare the Manufacturing overheadSeattle division manager responsibility report.

Rank the comparative performances of department managers in the Seattle Division.

Prepare the Manufacturing overheadvice president of production responsibility report.

Rank the comparative performances of division managers.

Prepare the Manufacturing overhead and expensespresident responsibility report.

Rank the comparative performances of vice presidents.