Clarke Inc. operates the Patio Furniture Division as a profit center. Operating data for this division for
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Question:
Clarke Inc. operates the Patio Furniture Division as a profit center. Operating data for this division for the year ended December 31, 2014 is shown below.
Budget | budget difference | ||||
Sales | $2,504,950 | $54,720 | F | ||
cost of goods sold | |||||
Variable | 1,307,710 | 43,070 | F | ||
fixed controllable | 209,180 | 3,090 | u | ||
sales and administrative | |||||
Variable | 221,740 | 7,190 | u | ||
fixed controllable | 47,600 | 1,060 | u | ||
Uncontrollable fixed costs | 67,330 | 4,830 | u |
In addition, Clarke incurs $184,320 of overhead fixed costs that were budgeted at $176,020. Twenty percent (20%) of these costs go to the Patio Furniture Division.
Required
Prepare a responsibility report for the Patio Furniture Division for the year. (List variable costs before fixed costs.)
Related Book For
Managerial Accounting Tools for business decision making
ISBN: 978-1118096895
6th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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