Solomon Corporation has four divisions: the assembly division, the processing division, the machining division, and the packing
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Question:
Solomon 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.
Budgeted Actual Variance
Paint Department
Controllable costs
Raw materials $ $ $ Unfavorable
Labor Unfavorable
Repairs Favorable
Maintenance Favorable
Total $ $ $ Unfavorable
Finishing Department
Controllable costs
Raw materials $ $ $ Favorable
Labor Favorable
Repairs Unfavorable
Maintenance Unfavorable
Total $ $ $ Favorable
Solomon uses flexible budgets for performance evaluation.
Other pertinent cost data for May follow.
Budgeted Actual
Cost data of other divisions
Assembly $ $
Machining
Packing
Other costs associated with
Processing division manager
Vice president of manufacturing
Solomon uses flexible budgets for performance evaluation.
Required
Prepare a responsibility report for the manager of the processing division.
Prepare a responsibility report for the vice president of manufacturing.
Related Book For
Fundamental Managerial Accounting Concepts
ISBN: 978-0078025655
7th edition
Authors: Thomas Edmonds, Christopher Edmonds, Bor Yi Tsay, Philip Old
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