Problem 10-6A (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.

Manufacturing Overhead Actual Budget Individual costsCutting Department

Seattle Indirect labor $73,100 $69,600 Indirect materials 48,000 45,800 Maintenance 20,700 17,500 Utilities 20,200 16,800 Supervision 22,500 19,500 $184,500 $169,200 Total costs Shaping DepartmentSeattle $158,100 $148,100 Finishing DepartmentSeattle 212,000 203,900 Denver division 678,200 672,700 San Diego division 722,100 715,400 Additional overhead costs were incurred as follows: Seattle division production manageractual costs $52,000, budget $51,200; vice president of productionactual costs $65,400, budget $64,400; presidentactual costs $76,700, 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 $133,700 $129,900 Finance 108,900 104,900 Prepare the Manufacturing overheadCutting Department managerSeattle division responsibility report. To Cutting Department ManagerSeattle Division Month: January Controllable Costs: Budget Actual Favorable Unfavorable Neither Favorable nor Unfavorable $ $ $ Total $ $ $ LINK TO TEXT Prepare the Manufacturing overheadSeattle division manager responsibility report. To Division Production ManagerSeattle Month: January Controllable Costs: Budget Actual Favorable Unfavorable Neither Favorable nor Unfavorable Seattle Division $ $ $ Departments: Total $ $ $ LINK TO TEXT Prepare the Manufacturing overheadvice president of production responsibility report. To Vice PresidentProduction Month: January Controllable Costs: Budget Actual Favorable Unfavorable Neither Favorable nor Unfavorable V-P Production $ $ $ Divisions: Total $ $ $ LINK TO TEXT Prepare the Manufacturing overhead and expensespresident responsibility report. To President Month: January Controllable Costs: Budget Actual Favorable Unfavorable Neither Favorable nor Unfavorable President $ $ $ Vice-Presidents: Total $ $