Problem A Farflung Company 72 points 72 points You are given the following information for Farflung Company for the year ended 2020 December 31. The company is organized according to functions: President VP of Manufacturing Budget Actual 12,000 16,800 Budget 24,000 Plant Manager Budget Actual 7,200 9,600 19,200 16,800 2,400 2,160 4,800 4,800 Actual 16,800 Controllable Expenses: Office expense Printing Paging Packaging Purchasing Receiving Inspection 5 VP of Marketing - Controller 3 Treasurer VP of Personnel 24,000 12,000 19,200 26,400 14,400 16,800 192,000 144,000 96,000 48,000 168,000 120,000 72,000 72,000 Requirement: Prepare Responsibility Accounting Reports for each of the three levels of management show. Make sure to indicate whether the variances are Favorable or Unfavorable. Plant Manager - Responsibility Report Budget Actual Variance Favorable/Unfavorable (Make sure all of the Variances are listed as positive numbers) 5 Office expense - Printing 3 Paging Packaging Total Controllable Costs (Hint: The total variance will be a Net of the favorable and Unfavorable Variances) Variance Favorable/Unfavorable (Make sure all of the Variances are listed as positive numbers) VP of Manufacturing - Responsibility Report Budget Actual 5 Office expense 6 Purchasing 7 Receiving 8 Inspection 9 Plant expenses (from Plant Manger Report above (totals)) Total Controllable Costs 1 (Hint: The total variance will be a Net of the Favorable and Unfavorable Variances) 3 President - Responsibility Report Budget Actual Variance Favorable/Unfavorable (Make sure all of the Variances are listed as positive numbers) 5 Office expense 6 VP of Marketing 7 Controller 8 Treasurer 9 VP of Personnel O VP of Manufacturing (from VP of Manf. Report above (totals)) Total Controllable costs Hint: The total variance will be a Net of the Favorable and Unfavorable Variances)