Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Problem 25-06A a-d Crane Company uses a responsibility reporting system. It has divisions in Denver, Seattle, and San Diego. Each division has three production departments:
Problem 25-06A a-d Crane 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. Budget Manufacturing Overhead Individual costs-Cutting Department-Seattle Indirect labor Indirect materials Maintenance Utilities Supervision $73,000 48,100 21,000 20,100 22,200 $184,400 $69,700 46,000 17,600 16,500 19,500 $169,300 Total costs Shaping Department-Seattle Finishing Department-Seattle Denver division San Diego division $158,400 210,500 677,900 722,500 $148,400 204,100 673,400 715,400 Additional overhead costs were incurred as follows: Seattle division production manager-actual costs $52,200, budget $50,800; vice president of production-actual costs $65,500, budget $64,100; president-actual costs $76,300, 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. Vice President Actual Budget Marketing Finance $134,100 108,600 $129,500 104,600 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 Total 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 Departments: Total 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 Divisions: Total 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
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started