Korene Manufacturing Inc. operates the home appliance division as a profit centre. Operating data for this division for the year ended December 31, 2012, are shown in the following table:

In addition, Korene Manufacturing incurred $150,000 of indirect fixed costs that were budgeted at $155,000. It allocates 20% of these costs to the home appliance division. The division manager cannot control any of these costs.
Instructions
(a) Prepare a responsibility report for the home appliance division for the year.
(b) Comment on the manager's performance in controlling revenues and costs.
(c) Identify any costs that were excluded from the responsibility report and explain why they were excluded.

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Budget Difference from Budget Sales Costs of goods sold 2.400,000 $200,000 U Variable costs Controllable fixed costs 1,200,000 200,000 60,000 U 9,000 F Selling and administrative expenses Variable costs Controllable fixed costs 240,000 60,000 50,000 8,000 F 3,000 U 2,000 U Noncontrollable fixed costs