Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Thornton Corporation has four divisions the assembly division, the processing division, the machining division, and the packing division All four divisions are under the control

image text in transcribed
image text in transcribed
Thornton Corporation has four divisions the assembly division, the processing division, the machining division, and the packing division All four divisions are under the control of the vice president of manufacturing. Each division has a manager and several departments that are directed by supervisors. The chain of command runs downward from vice president to division manager to supervisor. The processing division is composed of the paint and finishing departments. The May responsibility reports for the supervisors of these departments follow Budgeted Actual Variance $ 58,000 59,300 6,400 4,200 $127.900 Paint Department Controllable costs Raw materials Labor Repairs Maintenance Total Finishing Department Controllable costs Ruwwaterials Labor Repairs Maintenance Total $ 69,680 67.200 5,310 900 $137,010 * 2.600 7.900 1.000 300 $9,110 0 $ 46,000 16,500 3,630 2.66 $ 98,770 $ 43,400 41.500 4,130 3210 $ 92,360 $ 2,680 5.000 500 u 690 5.6,410 *Thornton uses flexible budgets for performance evaluation Other pertinent cost data for Mey follow Actual Cost data of other divisions Assembly Machining Packing Other costs associated with Processing division manager Vice president of manufacturing Hodete $385.000 298.000 422,950 $375,00 312,400 407,100 220.900 145,000 223.200 136,000 "Thornton uses flexible budgets for performance evaluation Required 6. Prepare a responsibility report for the manager of the processing division b. Prepare a responsibility report for the vice president of manufacturing Complete this question by entering your answers in the tabs below. Required Required Pre a responsibility report for the manager of the processing division (indicate the effect of each vario try selecting for vore "U" for unfavorable, and one for no effect o variance) Mesponsibility Report Processing Division Manager For the Month Ervded May 1 Controllable costs Budget Actual Pan depan Fishing department Other costs Variances 1 of 3 Finishing Department Controllable costs Raw materials Labor Repairs Maintenance Total $ 46,000 46, SO 3,630 2.640 $ 98,770 $ 43,400 41.50 4,130 3,330 $ 92,360 $ 2,600 5.000 S000 60U $ 6,918 'Thornton uses flexible budgets for performance evaluation Other pertinent cost data for May follow Budgeted Actual Cost data of other divisions Assembly Machining Packing Other costs associated with Processing division manager Vice president of manufacturing $388,000 298.000 422.950 $375,900 312,480 407.300 223,200 136.000 220,900 145, *Thornton uses flexible budgets for performance evaluation Required o. Prepare a responsibility report for the manager of the processing division, b. Prepare a responsibility report for the vice president of manufacturing, Complete this question by entering your answers in the tabs below. Required A Required Prepare a responsibilitasreport for the vice president of manufacturing. (lodicate the effect of each vartance by selecting for favorable for univorable, and None" for no effect te zo variance) 3 Variances Responsibility Report Vice President of Manufacturing For the Month Ended May 31 Controllable costs Budget Actual Assembly divo Processing division Machining division Packing division Other costs

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions