A performance report that compares budgeted and actual profit in the sporting goods department of Maxwell's Department Store for the month of December follows
Maxwell's Department Store
Sporting Goods
Performance Report December 2017

Required
a. Evaluate the department in terms of its increases in sales and expenses. Do you believe it would be useful to investigate either or both of the increases in expenses?
b. Consider storewide electricity cost. Would this cost be a controllable or a non controllable cost for the manager of sporting goods? Would it be useful to include a share of storewide electricity cost on the performance report for sporting goods?

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Budget Actual Difference $700,000 Sales Less: Cost of merchandise $775,000 $75,000 350,000 70,000 430,000 80,000 8,000 Salaries of sales staff Controllable profit 78,000 $280,000 $267,000 ($13,000)