Kanjak Company uses a responsibility reporting system. It has divisions in Calgary, Winnipeg, and Sudbury. Each division has three production departments: cutting, shaping, and finishing. Responsibility for each department belongs to 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 2016, controllable budgeted and actual manufacturing overhead costs for the departments and divisions were as follows:

Additional overhead costs were incurred as follows: Winnipeg division production manager-actual costs $73,100, budgeted $70,000; vice-president of production-actual costs $73,000, budgeted $70,000; president-actual costs $96,200, budgeted $91,300. These expenses are not allocated.
The vice-presidents, other than the vice-president of production, had the following expenses:

Instructions
(a) Using the format in Illustration 11-19, prepare the following responsibility reports:
1. Manufacturing overhead-cutting department manager-Winnipeg division
2. Manufacturing overhead-Winnipeg division manager
3. Manufacturing overhead-vice-president of production
4. Manufacturing overhead and expenses-president
(b) Comment on the comparative performances of
(1) The department managers in the Winnipeg division,
(2) The division managers, and (3) the vice-presidents.

Manufacturing Overhead Individual costs-cutting department-Winnipeg Actual Budget Indirect labour Indirect materials Maintenance Utilities Supervision $ 95,000 62,000 27,400 25,200 30,000 $239,600 $90,000 61,000 25,000 20,000 28,000 S224,000 Total costs Shaping department-Winnipeg Finishing department-Winnipeg Calgary division Sudbury division $190,000 249,000 722,000 760,000 $177,000 246,000 715,000 750,000 Marketing Finance Actual $167,200 124,000 Budget $160,000 120,000