Question

Campbell Corporation has four divisions: the assembly division, the processing division, the machining division, and the packing division. All four divisions are under the control of the vice president of manufacturing. Each division has a manager and several departments that are directed by supervisors. The chain of command runs downward from vice president to division manager to supervisor. The processing division is composed of the paint and finishing departments. The May responsibility reports for the supervisors of these departments follow: Budgeted. Actual Variance $ 46,000 58.100 5,200 3,000 $112,300 Paint Department Controllable costs Raw materials Tabor Repairs Maintenance Total Finishing Department Controllable costs Raw materials Labor Repairs Maintenance Total $ 47, 400 64,800 4,230 2,820 $119,250 $1,400 U 6,700 U 970 F 180 F $6.950 $ 34,000 44,100 3,030 1,920 $ 33,050 $ 32,600 40.300 3. 410 2,370 $78.680 $1,400 P 3.800 F 380 U 450 $ 4,370 E "Campbell uses flexible budgets for performance evaluation. Other pertinent cost data for May follow. Cost data of other divisions audgetedo actual Machining Packing other couts associated with Processing division manager Vicepresident of manufacturing $382.000 292.000 416,950 374.700 300,400 406100 220.500 110.000 218.400 136,060 *Campbell uses texible budgets for performance evaluation Required

Answer 1

solution: Part a Responsibility Report Processing Division Manager For the Month Ended May 31. Controllable Costs: Paint department Finishing deparment other costs Actual Budget Vairance 6950 U 112300 119250 78680 4370 F 83050 2400 F 220800 218400 Total 416150 416330 180 U Part b: Responsibility Report Vice President of Manufacturing For the Month Ended May 31. Controllable Costs: Assembly division Processing division Machining division Packing division other costs Budget Actual Vairance 7300 F 382000 374700 416150 416330 180 U 8400 U 406100 10850 F 292000 300400 416950 130000 136060 6060 U 1637100 1633590 3510 F Total