Gore Company uses a responsibility reporting system. It has divisions in San Francisco, Phoenix, and Tulsa. Each

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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 2012, controllable actual and budget manufacturing overhead cost data for the departments and divisions were as shown below.

Gore Company uses a responsibility reporting system. It has divi

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.

Gore Company uses a responsibility reporting system. It has divi

Instructions
(a) Using the format on page 1095, 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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