Gore Company uses a responsibility reporting system. It has divisions in San Francisco, Phoenix, and Tulsa. 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 2014, controllable actual and budget manufacturing overhead cost data for the departments and divisions were as shown on the next page.

Additional overhead costs were incurred as follows: Phoenix division production manager€”actual costs $73,100, budget $70,000; vice president of production€”actual costs $72,000, budget $70,000; president€”actual costs $94,200, budget $91,300. These expenses are not allocated.
The vice presidents, who report to the president (other than the vice president of production), had the following expenses.

Instructions
(a) Using the format on page 453, prepare the following responsibility reports.
(1) Manufacturing overhead€”Cutting Department manager€”Phoenix division.
(2) Manufacturing overhead€”Phoenix division manager.
(3) Manufacturing overhead€”vice president of production.
(4) Manufacturing overhead and expenses€”president.
(b) Comment on the comparative performances of:
(1) Department managers in the Phoenix division.
(2) Division managers.
(3) Vicepresidents.

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Manufacturing Overhead Individual costs-Cutting Department-Phoenix tl Budget Indirect labor Indirect materials Maintenance Utilities Supervision $95,000 90,000 61,000 25,000 20,000 28,000 $241,300 $224,000 62,700 27,400 25,200 31,000 Total costs Shaping Department-Phoenix Finishing Department-Phoenix San Francisco division Tulsa division $190,000 $177,000 250,000 245,000 724,000 715,000 760,000 750,000 Vice President udget Marketing Finance Actual $167,200 125,000 $160,000 120,000