Henning Manufacturing Inc. operates its patio furniture division as a profit centre. Operating data for this division for the year ended December 31, 2016, are as follows:

In addition, Henning Manufacturing incurs $180,000 of indirect fixed costs that were budgeted at $175,000. It allocates 20% of these costs to the patio furniture division.
Instructions
(a) Prepare a responsibility report for the patio furniture division for the year.
(b) Comment on the manager's performance in controlling revenues and costs.
(c) Identify any costs that have been excluded from the responsibility report and explain why they were excluded.

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BudgetDifference from Bu«d Sales Costs of goods sold $2,500,000 $60,000 F Variable costs Controllable fixed costs 1,300,000 200,000 41,000 F 6,000 U Selling and administrative expenses Variable costs Controllable fixed costs 220,000 50,000 70,000 7,000 U 2,000 U 4,000 U Noncontrollable fixed costs