Amarillo Corporation has four divisions: the assembly division,the processing division, the machining division, and the packingdivision. All four divisions are under the control of the vicepresident of manufacturing. Each division has a manager and severaldepartments that are directed by supervisors. The chain of commandruns downward from vice president to division manager tosupervisor. The processing division is composed of the paint andfinishing departments. The May responsibility reports for thesupervisors of these departments follow.
| Budgeted* | | Actual | | Variance |
| Paint Department | | | | | |
| Controllable costs | | | | | | | | | |
| Raw materials | $ | 84,000 | | $ | 86,000 | | $ | 2,000 | U |
| Labor | | 115,400 | | | 128,000 | | | 12,600 | U |
| Repairs | | 9,600 | | | 7,740 | | | 1,860 | F |
| Maintenance | | 5,200 | | | 4,920 | | | 280 | F |
| Total | $ | 214,200 | | $ | 226,660 | | $ | 12,460 | U |
| Finishing Department | | | | | |
| Controllable costs | | | | | | | | | |
| Raw materials | $ | 60,000 | | $ | 58,000 | | $ | 2,000 | F |
| Labor | | 86,600 | | | 79,800 | | | 6,800 | F |
| Repairs | | 5,660 | | | 6,340 | | | 680 | U |
| Maintenance | | 3,360 | | | 4,100 | | | 740 | U |
| Total | $ | 155,620 | | $ | 148,240 | | $ | 7,380 | F |
|
*Amarillo uses flexible budgets for performance evaluation.
Other pertinent cost data for May follow.
| Budgeted* | Actual |
| Cost data of other divisions | | | | | | |
| Assembly | $ | 760,000 | | $ | 748,600 | |
| Machining | | 580,000 | | | 592,800 | |
| Packing | | 829,900 | | | 811,400 | |
| Other costs associated with | | | | | | |
| Processing division manager | | 440,000 | | | 435,600 | |
| Vice president of manufacturing | | 256,000 | | | 266,120 | |
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*Amarillo uses flexible budgets for performanceevaluation.
Required
Prepare a responsibility report for the manager of theprocessing division.
Prepare a responsibility report for the vice president ofmanufacturing
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| | Responsibility Report | | Vice President of Manufacturing | | For the Month Ended May 31 | | Controllable costs | Budget | Actual | Variances | | Assembly division | | | | Fselected answer correct | | Processing division | | | | Uselected answer correct | | Machining division | 580,000selected answer correct | 592,800selected answer correct | 12,800selected answer correct | Uselected answer correct | | Packing division | 829,900selected answer correct | 811,400selected answer correct | 18,500selected answer correct | Fselected answer correct | | Other costs | 256,000selected answer correct | 266,120selected answer correct | 10,120selected answer correct | Uselected answer correct | | Total | $3,235,720selected answercorrect | $3,229,420selected answercorrect | | Fselected answercorrect |
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