Question: Bramble Company uses a responsibility reporting system. It has divisions in Denver, Seattle, and San Diego. Each division has three production departments: Cutting, Shaping, and
Bramble Company uses a responsibility reporting system. It has divisions in Denver, Seattle, and San Diego. 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 2022, controllable actual and budget manufacturing overhead cost data for the departments and divisions were as shown here. Manufacturing Overhead Individual costs-Cutting Department-Seattle Indirect labor Indirect materials Maintenance Utilities Supervision Actual Budget $73,000 $69,700 48,000 45,600 21,000 17,800 20,400 17,000 22,400 19,900 $184,800 $170,000 Total costs Shaping Department-Seattle $158,200 $148,700 Finishing Department-Seattle 210,600 203,700 Denver division 678,000 673,100 San Diego division 721,900 715,300 Additional overhead costs were incurred as follows: Seattle division production manager-actual costs $53,000, budget $51,500; vice president of production-actual costs $65,100, budget $64,300; president-actual costs $76,500, budget $74,700. These expenses are not allocated. The vice presidents who report to the president, other than the vice president of production, had the following expenses. Vice President Actual Budget Marketing $133,500 $129,600 Finance 108,500 104,500 (a) Prepare the Manufacturing overhead-Cutting Department manager-Seattle division responsibility report. To Cutting Department Manager-Seattle Division Controllable Costs: Budget $ Total $ $ Actual $ +A $ $ (b) Prepare the Manufacturing overhead-Seattle division manager responsibility report. To Division Production Manager-Seattle Controllable Costs: Seattle Division Departments: Budget $ $ Actual Total $ $ $ (c) Prepare the Manufacturing overhead-vice president of production responsibility report. To Vice President-Production Controllable Costs: V-P Production Divisions: Budget $ $ Actual $ Total $ $ $ (d) Prepare the Manufacturing overhead and expenses-president responsibility report. To President Controllable Costs: President Vice-Presidents: $ Budget $ Actual $ Total $ $ $ Favorable Unfavorable Neither Favoral nor Unfavorab
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