*Rooney uses flexible budgets for performance evaluation.Requireda. Prepare a responsibility report for the manager of the processing division.b. Prepare a responsibility report for the vice president of manufacturing.Complete this question by entering your answers in the tabs below.Required ARequired BPrepare a responsibility report for the manager of the processing division. (Indicate the effect of each variance by selecting"F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)Responsibility ReportProcessing Division ManagerFor the Month Ended May 31Controllable costsBudgetActualVariancesPaint departmentFinishing departmentOther costsTotal< Required ARequired B > Rooney 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 departmentsthat are directed by supervisors. The chain of command runs downward from vice president to division manager to supervisor. Theprocessing division is composed of the paint and finishing departments. The May responsibility reports for the supervisors of thesedepartments follow.Budgeted*ActualVariancePaint DepartmentControllable costsRaw materials$ 55,000$ 57,300$ 2,300 U66,6005,0403,630Labor59,0007,600 URepairsMaintenance6,1003,9001,060 F270 FTotal$124,000$132,570$ 8,570 UFinishing DepartmentControllable costs$ 43,00045,900$ 2,300 F4,700 F$ 40,70041,2003,9503,090Raw materialsLaborRepairsMaintenance3,480470 U2,460630 UTotal$ 94,840$ 88,940$ 5,900 F*Rooney uses flexible budgets for performance evaluation.Other pertinent cost data for May follow.Budgeted*ActualCost data of other divisionsAssemblyMachiningPackingOther costs associated with$386,500296,500421,450$375,600309,400407,000Processing division managerVice president of manufacturing222,600134,500220,200142,810

The responsibility performance report is the budget which shows the comparison between the budgeted…

*Rooney uses flexible budgets for performance evaluation. Required a. Prepare a responsibility report for the manager of the processing division. b. Prepare a responsibility report for the vice president of manufacturing. Complete this question by entering your answers in the tabs below. Required A Required B Prepare a responsibility report for the manager of the processing division. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

*Rooney uses flexible budgets for performance evaluation. Required a. Prepare a responsibility report for the manager of the processing division. b. Prepare a responsibility report for the vice president of manufacturing. Complete this question by entering your answers in the tabs below. Required A Required B Prepare a responsibility report for the manager of the processing division. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter10: Evaluating Decentralized Operations

Section: Chapter Questions

Problem 7E: Horton Technology has two divisions, Consumer and Commercial, and two corporate support departments,...

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