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Question: Amarillo Corporation has four divisions: the

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.
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.
Other pertinent cost data for May follow.
Required
1. Prepare a responsibility report for the manager of the processing division.
2. Prepare a responsibility report for the vice president of manufacturing.
3. Explain where the $12,600 unfavorable labor variance in the paint department supervisor’s report is included in the vice president’s report.
4. Based on the responsibility report prepared in Requirement a, explain where the processing division manager should concentrate his attention.

Other pertinent cost data for May follow.
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.
Other pertinent cost data for May follow.
Required
1. Prepare a responsibility report for the manager of the processing division.
2. Prepare a responsibility report for the vice president of manufacturing.
3. Explain where the $12,600 unfavorable labor variance in the paint department supervisor’s report is included in the vice president’s report.
4. Based on the responsibility report prepared in Requirement a, explain where the processing division manager should concentrate his attention.

Required 1. Prepare a responsibility report for the manager of the processing division. 2. Prepare a responsibility report for the vice president of manufacturing. 3. Explain where the $12,600 unfavorable labor variance in the paint department supervisor’s report is included in the vice president’s report. 4. Based on the responsibility report prepared in Requirement a, explain where the processing division manager should concentrate his attention.



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