Durham Company uses a responsibility reporting system. It has divisions in Denver, Seattle, and San Diego. Each
Question:
Additional overhead costs were incurred as follows: Seattle division production manageractual costs $52,500, budget $51,000; vice president of productionactual costs $65,000, budget $64,000; presidentactual costs $76,400, budget $74,200. 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 1095, prepare the following responsibility reports.
(1) Manufacturing overheadCutting Department managerSeattle division.
(2) Manufacturing overheadSeattle division manager.
(3) Manufacturing overheadvice president of production.
(4) Manufacturing overhead and expensespresident.
(b) Comment on the comparative performances of:
(1) Department managers in the Seattle division.
(2) Division managers.
(3) Vicepresidents.
Step by Step Answer:
Accounting Tools for business decision making
ISBN: 978-0470095461
4th Edition
Authors: kimmel, weygandt, kieso