Clarke Inc. operates the Patio Furniture Division as a profit center. Operating data for this division for

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Clarke Inc. operates the Patio Furniture Division as a profit center. Operating data for this division for the year ended December 31, 2014, are as shown below.

Clarke Inc. operates the Patio Furniture Division as a profit

In addition, Clarke incurs $180,000 of indirect fixed costs that were budgeted at $175,000. Twenty percent (20%) of these costs are allocated 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 excluded from the responsibility report and explain why they wereexcluded.

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Accounting Principles

ISBN: 9781118566671

11th Edition

Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso

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