Problem 10-6A (Part Level Submission) (Video) 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. Actual Budget Manufacturing Overhead Individual costs-Cutting Department -Seattle Indirect labor Indirect materials Maintenance Utilities $73,200 48,200 20,500 19,900 22,000 $69,900 45,500 18,000 16,800 19,600 Supervision $183,800 $ 169,800 Total costs Shaping Department-Seattle Finishing Department-Seattle Denver division San Diego division $157,700 210,600 677,900 721,800 $149,000 204,300 673,200 714,800 Additional overhead costs were incurred as follows: Seattle division production manager-actual costs $53,000, budget $51,400; vice president of production-actual costs $65,400, budget $63,900; president-actual costs $76,900, 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. (a) Your answer is correct. Prepare the Manufacturing overhead-Cutting Department manager-Seattle division responsibility report. To Cutting Department Manager-Seattle Division Month: January Favorable Unfavorable Neither Favorable nor Unfavorable Controllable Costs: Budget Actual Indirect Materials 45500 48200 2700 T Unfavorable Indirect Labor 69900 73200 3300|Unfavorable Maintenance 18000 20500 2500|| Unfavorable Utilities 16800 19900 3100Unfavorable Supervision 19600 22000 2400|Unfavorable Total 169800 183800 14000 T Unfavorable SHOW ANSWER LINK TO TEXT VIDEO: SIMILAR PROBLEM (b) Your answer is correct. Prepare the Manufacturing overhead-Seattle division manager responsibility report. To Division Production Manager-Seattle Month: January Favorable Unfavorable Neither Favorable nor Unfavorable Controllable Costs: Budget Actual Seattle Division 51400 53000 1600 Unfavorable Departments: Cutting 169800 183800 14000 Unfavorable M Shaping 149000 157700 8700 Unfavorable Finishing 204300 210600 6300 Unfavorable Total 5745001 605100 30600 T Unfavorable SHOW SOLUTION SHOW ANSWER Your answer is correct Prepare the Manufacturing overhead-vice president of production responsibility report. To Vice President-Production Month: January Favorable Unfavorable Neither Favorable nor Unfavorable Controllable Costs: Budget Actual V-P Production 63900 65400 1500|| Unfavorable Divisions: Seattle 574500 605100 30600|| Unfavorable Denver 673200 677900 4700|Unfavorable San Diego 7148001 721800 7000|| Unfavorable Total 2026400 2070200 43800 T Unfavorable (d) Prepare the Manufacturing overhead and expenses-president responsibility report. To President Month: January Favorable Unfavorable Neither Favorable nor Unfavorable Controllable Costs: Budget Actual President $ $ $ Vice-Presidents: Total $
