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Mathematics, 08.04.2020 02:50 shaking9302

Amarillo 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 Paint Department Controllable costs Raw materials $ 84,000 $ 86,000 $ 2,000 U Labor 115,400 128,000 12,600 U Repairs 9,600 7,740 1,860 F Maintenance 5,200 4,920 280 F Total $ 214,200 $ 226,660 $ 12,460 U Finishing Department Controllable costs Raw materials $ 60,000 $ 58,000 $ 2,000 F Labor 86,600 79,800 6,800 F Repairs 5,660 6,340 680 U Maintenance 3,360 4,100 740 U Total $ 155,620 $ 148,240 $ 7,380 F *Amarillo uses flexible budgets for performance evaluation. Other pertinent cost data for May follow: Budgeted* Actual Cost data of other divisions Assembly $ 760,000 $ 748,600 Machining 580,000 592,800 Packing 829,900 811,400 Other costs associated with Processing division manager 440,000 435,600 Vice president of manufacturing 256,000 266,120 *Amarillo uses flexible budgets for performance evaluation. Required Prepare a responsibility report for the manager of the processing division. Prepare a responsibility report for the vice president of manufacturing.

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