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Problem 21-6A Manufacturing Overhead Actual Budget $73,180 $69,700 48,060 45,620

ID: 2459506 • Letter: P

Question

Problem 21-6A

Manufacturing Overhead

Actual

Budget

$73,180

$69,700

48,060

45,620

20,660

17,810

19,940

16,610

22,270

19,870

$184,110

$169,610

Vice President

Actual

Budget

(a1)

To Cutting Department Manager—Seattle Division

Month: January

Controllable Costs:

Budget

Actual

Favorable F
Unfavorable U
Neither Favorable
nor Unfavorable N

            Total

Open Show Work

LINK TO TEXT

(a2)

To Division Production Manager—Seattle

Month: January

Controllable Costs:

Budget

Actual

Favorable F
Unfavorable U
Neither Favorable
nor Unfavorable N

            Total

Open Show Work

LINK TO TEXT

(a3)

To Vice President—Production

Month: January

Controllable Costs:

Budget

Actual

Favorable F
Unfavorable U
Neither Favorable
nor Unfavorable N

            Total

Open Show Work

LINK TO TEXT

(a4)

To President

Month: January

Controllable Costs:

Budget

Actual

Favorable F
Unfavorable U
Neither Favorable
nor Unfavorable N

            Total

Open Show Work

PLEASE EXPLAIN HOW TO SOLVE THIS. THANK YOU

Problem 21-6A

Durham 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 2012, controllable actual and budget manufacturing overhead cost data for the departments and divisions were as shown below.

Manufacturing Overhead

Actual

Budget

Individual costs—Cutting Department—Seattle     Indirect labor

$73,180

$69,700

    Indirect materials

48,060

45,620

    Maintenance

20,660

17,810

    Utilities

19,940

16,610

    Supervision

22,270

19,870

$184,110

$169,610

Total costs     Shaping Department—Seattle $158,140 $148,960     Finishing Department—Seattle 210,050 203,610     Denver division 676,320 672,610     San Diego division 721,740 714,750
Additional overhead costs were incurred as follows: Seattle division production manager—actual costs $52,130, budget $51,240; vice president of production—actual costs $65,260, budget $64,340; president—actual costs $75,970, budget $73,880. 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

Budget

Marketing $133,940 $129,940 Finance 108,570 104,670

(a1)

Your answer is correct. Prepare the following Manufacturing overhead—Cutting Department manager—Seattle division responsibility reports.

To Cutting Department Manager—Seattle Division

Month: January

Controllable Costs:

Budget

Actual

Favorable F
Unfavorable U
Neither Favorable
nor Unfavorable N

Direct LaborDirect MaterialsFinishing Department SeattleIndirect LaborIndirect MaterialsMaintenancePresidentSeattle Division Production ManagerShaping Department SeattleSupervisionUtilitiesVice President of Production

$

$

$

UFN

Direct LaborDirect MaterialsFinishing Department SeattleIndirect LaborIndirect MaterialsMaintenancePresidentSeattle Division Production ManagerShaping Department SeattleSupervisionUtilitiesVice President of Production

FNU

Direct LaborDirect MaterialsFinishing Department SeattleIndirect LaborIndirect MaterialsMaintenancePresidentSeattle Division Production ManagerShaping Department SeattleSupervisionUtilitiesVice President of Production

NFU

Direct LaborDirect MaterialsFinishing Department SeattleIndirect LaborIndirect MaterialsMaintenancePresidentSeattle Division Production ManagerShaping Department SeattleSupervisionUtilitiesVice President of Production

UNF

Direct LaborDirect MaterialsFinishing Department SeattleIndirect LaborIndirect MaterialsMaintenancePresidentSeattle Division Production ManagerShaping Department SeattleSupervisionUtilitiesVice President of Production

FUN

            Total

$

$

$

UNF

Click if you would like to Show Work for this question:

Open Show Work

LINK TO TEXT

Attempts: 3 of 5 used

(a2)

Your answer is correct. Prepare the following Manufacturing overhead—Seattle division manager responsibility reports.

To Division Production Manager—Seattle

Month: January

Controllable Costs:

Budget

Actual

Favorable F
Unfavorable U
Neither Favorable
nor Unfavorable N

Seattle Division

$

$

$

NFU

Departments: CuttingDenverFinanceFinishingMarketingProductionSan DiegoSeattleShaping

FNU

CuttingDenverFinanceFinishingMarketingProductionSan DiegoSeattleShaping

FUN

CuttingDenverFinanceFinishingMarketingProductionSan DiegoSeattleShaping

FNU

            Total

$

$

$

UNF

Click if you would like to Show Work for this question:

Open Show Work

LINK TO TEXT

Attempts: 4 of 5 used

(a3)

Your answer is correct. Prepare the following Manufacturing overhead—vice president of production responsibility reports.

To Vice President—Production

Month: January

Controllable Costs:

Budget

Actual

Favorable F
Unfavorable U
Neither Favorable
nor Unfavorable N

V-P Production

$

$

$

NUF

   Divisions: CuttingDenverFinanceFinishingMarketingProductionSan DiegoSeattleShaping

UFN

CuttingDenverFinanceFinishingMarketingProductionSan DiegoSeattleShaping

NFU

CuttingDenverFinanceFinishingMarketingProductionSan DiegoSeattleShaping

NFU

            Total

$

$

$

FUN

Click if you would like to Show Work for this question:

Open Show Work

LINK TO TEXT

Attempts: 4 of 5 used

(a4)

Your answer is correct. Prepare the following Manufacturing overhead and expenses—president responsibility reports.

To President

Month: January

Controllable Costs:

Budget

Actual

Favorable F
Unfavorable U
Neither Favorable
nor Unfavorable N

President

$

$

$

UNF

Vice-Presidents: CuttingDenverFinanceFinishingMarketingProductionSan DiegoSeattleShaping

NUF

CuttingDenverFinanceFinishingMarketingProductionSan DiegoSeattleShaping

FUN

CuttingDenverFinanceFinishingMarketingProductionSan DiegoSeattleShaping

UFN

            Total

$

$

$

UNF

Click if you would like to Show Work for this question:

Open Show Work

Explanation / Answer

Problem 21-6A Manufacturing Overhead Actual Budget $73,180 $69,700 48,060 45,620

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