Guzman Inc. operates the Home Appliance Division as a profit center. Operating data for this division for
Question:
In addition, Guzman incurs $150,000 of indirect fixed costs that were budgeted at $155,000. Twenty percent (20%) of these costs are allocated to the Home Appliance Division. None of these costs are controllable by the division manager.
Instructions
(a) Prepare a responsibility report for the Home Appliance Division (a profit center) for the year.
(b) Comment on the managers performance in controlling revenues and costs.
(c) Identify any costs excluded from the responsibility report and explain why they wereexcluded.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Accounting Principles
ISBN: 9781118566671
11th Edition
Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso
Question Posted: