The Pillar Manufacturing Company has three identified levels of authority and responsibility. The organization chart as of December 31, 2011, appears as follows:

Pertinent expenses for Level 3 follow:

Pertinent expenses for Level 2 follow:

Pertinent expenses for Level 1 follow:

Required
a. Construct a spreadsheet that shows responsibility reports for the finishing department supervisor, the production vice president, and the president.
b. Include formulas in the responsibility reports that illustrate the interrelationships between these reports. For example, changes in the finishing department report should be automatically reflected in the production department report.
Spreadsheet Tip
(1) Use the absolute value function [=ABS(value)] in the formulas that calculate the variances.

Transcribed Image Text:

Level 1 President Production Vice President Marketing Vice President Finance Vice President Level 2 Level 3 Cutting Department Supervisor Finishing Department Supervisor Department Department Supervisors Supervisors