Flounder 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 $73,100 $69,600 Indirect materials 48,200 45,600 Maintenance 20,900 17,700 Utilities 20,600 16,900 Supervision 22,000 19,600 $184,800 $169,400 Total costs Shaping Department—Seattle $158,500 $148,400 Finishing Department—Seattle 211,500 203,500 Denver division 678,300 672,700 San Diego division 722,200 714,500 Additional overhead costs were incurred as follows: Seattle division production manager—actual costs $53,000, budget $50,500; vice president of production—actual costs $65,400, budget $64,000; president—actual costs $76,800, budget $74,100. These expenses are not allocated. The vice presidents who report to the president, other than the vice president of production, had the following expenses. Prepare the manufacturing overhead-cutting department manager- Seattle division responsibility report. Vice President Actual Budget Marketing $133,500 $129,900 Finance 108,800 105,500

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Flounder 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	$73,100	$69,600
Indirect materials	48,200	45,600
Maintenance	20,900	17,700
Utilities	20,600	16,900
Supervision	22,000	19,600
	$184,800	$169,400

Total costs
Shaping Department—Seattle	$158,500	$148,400
Finishing Department—Seattle	211,500	203,500
Denver division	678,300	672,700
San Diego division	722,200	714,500

Additional overhead costs were incurred as follows: Seattle division production manager—actual costs $53,000, budget $50,500; vice president of production—actual costs $65,400, budget $64,000; president—actual costs $76,800, budget $74,100. These expenses are not allocated.

The vice presidents who report to the president, other than the vice president of production, had the following expenses. Prepare the manufacturing overhead-cutting department manager- Seattle division responsibility report.

Vice President	Actual	Budget
Marketing	$133,500	$129,900
Finance	108,800	105,500

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