Problem 22-6A (Part Level Submission) 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 costs-Cutting Department-Seattle Indirect labor Indirect materials Maintenance Utilities Supervision 48,000 20,600 20,400 22,500 $184,700 $73,200 $69,800 45,500 17,900 16,800 19,500 Total costs $157,500 $148,700 204,300 672,600 715,300 Shaping Department-Seattle 211,400 678,100 721,500 Finishing Department-Seattle Denver division San Diego division Additional overhead costs were incurred as follows: Seattle division production manager-actual costs $52,000, budget $50,600; vice president of production-actual costs $65,100, budget $64,300; president-actual costs $76,500, 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 Actual Budget Vice President Marketing Finance $133,100 108,800 $130,100 105,500