Wiley PLUS Che X C edugen.wileyplus.com main.uni WileyPLUS Kimmel, Accounting, 4

ID: 2491530 • Letter: W

Question

Wiley PLUS Che X C edugen.wileyplus.com main.uni WileyPLUS Kimmel, Accounting, 4e Home Read, Study & Practice Grade b Assignment Open Assignment CALCULATOR PRINTER VERSION BACK NEXT ASSIGNMENT RESOURCES 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 bility h depart product Each d product Th dents ports ports CH.21 HW for marketing and finance. All vice presidents report to the president 21-5A In January 2012, controllable actual and budget manufacturing overhead cost data for the departments and divisions were as shown below. 21-6A Manufacturing overhead Actual Budget Review Results by study Individual costs-Cutting Department-Seattle Object Indirect labor $73,470 $69,800 48,030 45,520 Indirect materials Maintenance 20,920 17,640 20,480 16,640 Supervision 22,350 19,610 $185,250 $169,210 Total costs Shaping Department-Seattle $157,850 $148,290 Finishing Department-Seattle 211,920 204,150 Denver division 675,870 672,630 Diego d 722,060 714,650 Additional overhead costs were incurred as follows: Seattle division production manager-actual costs $52,250, budget $51,250 vice president of production-actual costs $65,170, budget $64,410 president-actual costs $76,620, budget $73,760. These expenses are not allocated The vice presidents who report to the president, other than the vice president of production, had the following expenses. ice President Actual Budget Marketing $133,490 $130,390 108,530 105,400 Prepare the followina Manufacturina overhead-Cuttina Department manaaer-Seattle division responsibilitv reports License Agreement l Privacy Policy I G 2000-2016 John Wiley Sons Inc. All Rights Reserved. A Division of 2ohn Wiley Sons Inc 4.18.1.3 25 AM 5/25/2016

Explanation / Answer

Manufacturing overhead- Cutting Department - Seattle division responsibility report:

To Cutting Department Manager- Seattle Division

Month: January

Controllable Costs:

Budget

Actual

Variance

B-A

Indirect Labor

$ 69,800

$ 73,470

$ 3,670

Indirect Material

$ 45,520

$ 48,030

$ 2,510

Maintenance

$ 17,640

$ 20,920

$ 3,280

Utilities

$ 16,640

$ 20,480

$ 3,840

Supervision

$ 19,610

$ 22,350

$ 2,740

Total

$ 169,210

$ 185,250

$ 16,040

All variances are Unfavorable because actual costs are more than budgeted costs.