Greene Corporation has four divisions: the assembly division, the processing division, the machining division, and the packing division. All four divisions are under the control of the vice president of manufacturing. Each division has a manager and several departments that are directed by supervisors. The chain of command runs downward from vice president to division manager to supervisor. The processing division is composed of the paint and finishing departments. The May responsibility reports for the supervisors of these departments follow.

Other pertinent cost data for May follow.

Required
a. Prepare a responsibility report for the manager of the processing division.
b. Prepare a responsibility report for the vice president of manufacturing.
c. Explain where the $6,300 unfavorable labor variance in the paint department supervisor’s report is included in the vice president’s report.
d. Based on the responsibility report prepared in Requirement a, explain where the processing division manager should concentrate hisattention.

Budgeted" Actual Variance Paint Department Controllable costs Raw materials Labor Repairs Maintenance 42,000 57,700 4,800 2,600 $107,100 43,000 64,000 3,870 2,460 $113.330 $1,000 U 6,300 U 930 F 140 F $6,230 U Total Finishing Department Controllable costs Raw materials Labor Repairs Maintenance S 30,000 43,300 2,830 1,680 S 77,810 S 29,000 39,900 3,170 2,050 S 74,120 $1,000 F 3,400 F 340 U 370 U $3,690 F Total Greene uses flexible budgets for performance evaluation. Budgeted* Actual Cost data of other divisions Assembly Machining Packing $380,000 290,000 414,950 S374,300 296,400 405,700 Other costs associated with Processing division manager Vice president of manufacturing 220,000 128,000 217,800 133,060 Greene uses flexible budgets for performance evaluation.