Sydney Industries’ organization chart includes the president; the vice president of production; three assembly plants—Sutherland, Kogarah, and Canterbury; and two departments within each plant—Machining and Finishing. Budget and actual manufacturing cost data for July 2020 are as follows.

Finishing Department—Sutherland: direct materials €42,500 actual, €44,000 budget; direct labor €83,400 actual, €82,000 budget; manufacturing overhead €51,000 actual, €49,200 budget.

Machining Department—Sutherland: total manufacturing costs €220,000 actual, €219,000 budget. 

Kogarah Plant: total manufacturing costs €424,000 actual, €420,000 budget.

Canterbury Plant: total manufacturing costs €494,200 actual, €496,500 budget.

The Sutherland plant manager’s office costs were €95,000 actual and €92,000 budget. The vice president of production’s office costs were €132,000 actual and €130,000 budget. Office costs are not allocated to departments and plants.

Instructions

Using the format shown in Illustration 25.19, prepare the reports in a responsibility system for:

a. The Finishing Department—Sutherland.

b. The plant manager—Sutherland.

c. The vice president of production.