Problem 22 6A 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 2014, 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 $73,270 $69,960 Indirect materials 48,030 45,870 Maintenance 20,850 17,800 Utilities 20,350 16,830 Supervision 22,300 19,560 $184,800 $170,020 Total costs Shaping DepartmentSeattle $157,930 $148,930 Finishing DepartmentSeattle 210,310 203,780 Denver division 678,140 673,440 San Diego division 721,540 714,520 Additional overhead costs were incurred as follows Seattle division production manageractual costs $52,440, budget $51,140 vice president of productionactual costs $65,070, budget $63,580 presidentactual costs $76,660, budget $74,140 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 $129,850 Finance 108,750 104,600 Prepare Manufacturing overheadCutting Department managerSeattle division responsibility report Prepare Manufacturing overheadSeattle division manager responsibility report Prepare the following Manufacturing overheadvice president of production responsibility reports Prepare the following Manufacturing overhead and expensespresident responsibility reports

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Problem 22-6A Durham Company uses a responsibility reporting system. It has divisions in Denver, Seattle, and San Diego. Each division has three production departments: Cutting,

Problem 22-6A

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 2014, 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	$73,270	$69,960
Indirect materials	48,030	45,870
Maintenance	20,850	17,800
Utilities	20,350	16,830
Supervision	22,300	19,560
	$184,800	$170,020

Total costs
Shaping DepartmentSeattle	$157,930	$148,930
Finishing DepartmentSeattle	210,310	203,780
Denver division	678,140	673,440
San Diego division	721,540	714,520

Additional overhead costs were incurred as follows: Seattle division production manageractual costs $52,440, budget $51,140; vice president of productionactual costs $65,070, budget $63,580; presidentactual costs $76,660, budget $74,140. These expenses are not allocated. The vice presidents who report to the president, other than the vice president of production, had the following expenses.