The mortgage division of Earl Financial Services, Inc., is managed by a vice president who supervises three regional operations. Each regional operation has a general manager and several branches directed by branch managers.
The West region has two branches, Field and Lynch. The March responsibility reports for the managers of these branches follow.

Other pertinent cost data for March follow.

Required
a. Prepare a responsibility report for the general manager of the West region.
b. Prepare a responsibility report for the vice president of the mortgage division.
c. Explain where the $5,000 unfavorable promotions variance in the Field branch manager€™s report is included in the vice president€™s report.
d. Based on the responsibility report prepared in Requirement a, explain where the West region€™s general manager should concentrate herattention.

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Budgeted" Actual Variance Field Branch Controllable costs Employee compensation Office supplies Promotions $300,000 72,000 146,000 16,000 $534,000 $295,800 $4,200 F 2,000 F 5,000 U 5,200 U $538,000 4,000 U 70,000 151,000 21,200 Total Lynch Branch Controllable costs Employee compensation Office supplies Promotions Maintenance $260,000 76,000 144,000 20,000 $500,000 $250,000 $10,000 F 8,000 U 6,000 U 800 F $503,200 S 3,200 U 84,000 150,000 19,200 Total Earl uses flexible budgets for performance evaluation. Budgeted Actual Cost data of other regions East South $1,400,000 $%1,452,000 1,688,000 1,720,000 Other costs controllable by West region general manager Vice president of mortgage 280,000 384,000 292,000 392,000 Earl uses fiexible budgets for performance evaluation.