Stuart 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	$ 57,000	$ 59,500	$ 2,500	Unfavorable
Labor	59,200	67,000	7,800	Unfavorable
Repairs	6,300	5,220	1,080	Favorable
Maintenance	4,100	3,810	290	Favorable
Total	$ 126,600	$ 135,530	$ 8,930	Unfavorable
Finishing Department
Controllable costs
Raw materials	$ 45,000	$ 42,500	$ 2,500	Favorable
Labor	46,300	41,400	4,900	Favorable
Repairs	3,580	4,070	490	Unfavorable
Maintenance	2,580	3,250	670	Unfavorable
Total	$ 97,460	$ 91,220	$ 6,240	Favorable

*Stuart uses flexible budgets for performance evaluation.

Other pertinent cost data for May follow.

	Budgeted*	Actual
Cost data of other divisions
Assembly	$ 387,500	$ 375,800
Machining	297,500	311,400
Packing	422,450	407,200
Other costs associated with
Processing division manager	223,000	220,800
Vice president of manufacturing	135,500	144,310

*Stuart uses flexible budgets for performance evaluation.

Required

a.Prepare a responsibility report for the manager of the processing division.

b. Prepare a responsibility report for the vice president of manufacturing.