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

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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

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.