Blue Spruce 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 Actual Budget Individual costs-Cutting Department-Seattle Indirect labor Indirect materials 48,200 45.500 Maintenance 20,500 0090 Utilities 009'07 009'9 Supervision 22,400 000 $184,800 $169,300 Total costs Shaping Department-Seattle $148,200 Finishing Department-Seattle 210,300 204,100 Denver division 678,400 673,200 714,500 San Diego division 0061 Additional overhead costs were incurred as follows: Seattle division production manager-actual costs $52,100, budget $51.000; vice president of production-actual costs $65,300, budget $64,500; president-actual costs $76,900, budget $73,700. 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 1a8png Marketing $133.200 009 6 Finance 009 (e) Prepare the Manufacturing overhead-Cutting Dopartment manager-Seattle division responsibiiy report To Cutting Department Manager-Seattle Division Vice President Actual Budget Marketing $133,200 $129,600 Finance 109,500 104,600 (a) Prepare the Manufacturing overhead-Cutting Department manager-Seattle division responsibility report. To Cutting Department Manager-Seattle Division Controllable Costs: Budget Actual Total eTextbook and Media %24 %24 %24
Blue Spruce 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 Actual Budget Individual costs-Cutting Department-Seattle Indirect labor Indirect materials 48,200 45.500 Maintenance 20,500 0090 Utilities 009'07 009'9 Supervision 22,400 000 $184,800 $169,300 Total costs Shaping Department-Seattle $148,200 Finishing Department-Seattle 210,300 204,100 Denver division 678,400 673,200 714,500 San Diego division 0061 Additional overhead costs were incurred as follows: Seattle division production manager-actual costs $52,100, budget $51.000; vice president of production-actual costs $65,300, budget $64,500; president-actual costs $76,900, budget $73,700. 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 1a8png Marketing $133.200 009 6 Finance 009 (e) Prepare the Manufacturing overhead-Cutting Dopartment manager-Seattle division responsibiiy report To Cutting Department Manager-Seattle Division Vice President Actual Budget Marketing $133,200 $129,600 Finance 109,500 104,600 (a) Prepare the Manufacturing overhead-Cutting Department manager-Seattle division responsibility report. To Cutting Department Manager-Seattle Division Controllable Costs: Budget Actual Total eTextbook and Media %24 %24 %24
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Question 20
Transcribed Image Text:Blue Spruce 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
Actual
Budget
Individual costs-Cutting Department-Seattle
Indirect labor
Indirect materials
48,200
45.500
Maintenance
20,500
0090
Utilities
009'07
009'9
Supervision
22,400
000
$184,800
$169,300
Total costs
Shaping Department-Seattle
$148,200
Finishing Department-Seattle
210,300
204,100
Denver division
678,400
673,200
714,500
San Diego division
0061
Additional overhead costs were incurred as follows: Seattle division production manager-actual costs $52,100, budget $51.000; vice
president of production-actual costs $65,300, budget $64,500; president-actual costs $76,900, budget $73,700. 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
1a8png
Marketing
$133.200
009 6
Finance
009
(e)
Prepare the Manufacturing overhead-Cutting Dopartment manager-Seattle division responsibiiy report
To Cutting Department Manager-Seattle Division
Transcribed Image Text:Vice President
Actual
Budget
Marketing
$133,200
$129,600
Finance
109,500
104,600
(a)
Prepare the Manufacturing overhead-Cutting Department manager-Seattle division responsibility report.
To Cutting Department Manager-Seattle Division
Controllable Costs:
Budget
Actual
Total
eTextbook and Media
%24
%24
%24
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