Company uses a responsibility

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
Individual costs—Cutting Department—Seattle        
    Indirect labor  
    Indirect materials  

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
Marketing   $134,000   $129,800
Finance   108,600   105,100

Prepare the Manufacturing overhead—Seattle division manager responsibility report.

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