Performance reports and evaluation Vance 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 his attention.

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Budgeted* Actual Variance Paint Department Controllable costs Raw materials $ 31,700 $ 900 U 6,300 U $30,800 57,700 4,800 Labor 64,000 3,870 Repairs Maintenance 930 F 2,600 $95,900 2,460 $102,030 140 F Total $6,130 U Finishing Department Controllable costs $ 250 F 3,400 F $ 22,560 Raw materials $22,810 Labor 43,300 2,830 1,680 39,900 3,170 2,050 Repairs Maintenance 340 U 370 U $ 67,680 $2,940 F Total $70,620 *Vance uses flexible budgets for performance evaluation.