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 2020, 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		$73,100		$69,600
Indirect materials		48,200		45,700
Maintenance		21,000		17,700
Utilities		20,600		16,600
Supervision		22,400		19,900
		$185,300		$169,500

Total costs
Shaping Department—Seattle		$157,500		$149,000
Finishing Department—Seattle		211,900		204,500
Denver division		677,900		673,400
San Diego division		722,500		714,500

Additional overhead costs were incurred as follows: Seattle division production manager—actual costs $52,000, budget $51,400; vice president of production—actual costs $65,500, budget $64,000; president—actual costs $76,000, budget $74,200. 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		$134,000		$129,800
Finance		108,600		105,100