The mortgage division of Magee Financial Services, Inc. is managed by a vice president who supervises three regional operations. Each regional operation has a general manager and several branches directed by branch managers. The West region has two branches, Jackson and Abilene. The March responsibility reports for the managers of these branches follow:

Other pertinent cost data for March follow:
Budgeted* Actual
Cost data of other regions
East........................................... $700,000.................... $726,000
South.......................................... 860,000..................... 844,000
Other costs controllable by
West region general manager.............. 140,000...................... 146,000
Vice president of mortgage................ 192,000...................... 196,000
*Magee uses flexible budgets for performance evaluation.
Required
a. Prepare a responsibility report for the general manager of the West region.
b. Prepare a responsibility report for the vice president of the mortgage division.
c. Explain where the $2,500 unfavorable promotions variance in the Jackson branch manager's report is included in the vice president's report.
d. Based on the responsibility report prepared in Requirement a, explain where the West region's general manager should concentrate her attention.

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Budgeted" Variance Jackson Branch Controllable costs 150,000 $147,900 35,000 75,500 10,600 $269,000 $2,100 F 1,000 F 2,500 U 2,600 U $2,000 U Employee compensation Office supplies 8,000 $267,000 Abilene Branch Controllable costs $130,000 38,000 $125,000 42,000 $5,000 F 4,000 U 3,000 U 400 F $1,600 U Employee compensation Office supplies 10,000 $250,000 Total $251,600 Magee uses flexible budgets for performance evaluation.