Question 15 Vaughn 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 costs-Cutting Department-Seattle Indirect labor $73,200 $69,800 Indirect materials 48,100 45,600 Maintenance 20,500 17,700 Utilities 20,200 16,700 Supervision 22,100 19,700 $184,100 $169,500 Total costs Shaping Department-Seattle $158,000 $148,700 Finishing Department-Seattle 212,000 204,400 Denver division 678,300 673,400 San Diego division 722,300 715,100 Additional overhead costs were incurred as follows: Seattle division production manager-actual costs $52,600, budget $51,500; vice president of production-actual costs $65,000, budget $63,500; president-actual costs $76,400, budget $73,800. 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 Budget Marketing $134,000 $130,000 Finance 108,700 105,000 Act 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 $ $ Indirect Labor Indirect Materials Maintenance Utilities Supervision $ $ Total LINK TO TEXT VIDEO: SIMILAR PROBLEM Prepare the Manufacturing overhead-Seattle division manager responsibility report. To Division Production Manager-Seattle Month: January Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Controllable costs: Seattle Division $ Departments: Cutting Shaping Finishing Total Prepare the Manufacturing overhead-vice president of production responsibility report. To Vice President-Production Month: January Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Controllable costs: V-P Production $ Divisions: Seattle Denver San Diego Total $ LINK TO TEXT VIDEO: SIMILAR PROBLEM Prepare the Manufacturing overhead and expenses-president responsibility report. To President Month: January Favorable Unfavorable Nel Favorable nor Unfavorable Controllable Costs: Budget Actual President $ $ $ Vice-Presidents: Production Marketing Finance Total $ Click if you would like to show Work for this question: Open Show Work
