Bramble Company manufactures a variety of tools and industrial equipment. The company operates through three divisions. Each division is an investment center. Operating data for the Home Division for the year ended December 31, 2022, and relevant budget data are as follows. Actual Comparison with Budget Sales $1,400,000 $101,000 favorable Variable cost of goods sold 680,000 56,000 unfavorable Variable selling and administrative expenses 124,000 24,000 unfavorable Controllable fixed cost of goods sold 171,000 On target Controllable fixed selling and administrative expenses 81,000 On target Average operating assets for the year for the Home Division were $2,000,000, which was also the budgeted amount. Prepare a responsibility report for the home division.
Bramble Company manufactures a variety of tools and industrial equipment. The company operates through three divisions. Each division is an investment center. Operating data for the Home Division for the year ended December 31, 2022, and relevant budget data are as follows. Actual Comparison with Budget Sales $1,400,000 $101,000 favorable Variable cost of goods sold 680,000 56,000 unfavorable Variable selling and administrative expenses 124,000 24,000 unfavorable Controllable fixed cost of goods sold 171,000 On target Controllable fixed selling and administrative expenses 81,000 On target Average operating assets for the year for the Home Division were $2,000,000, which was also the budgeted amount. Prepare a responsibility report for the home division.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Bramble Company manufactures a variety of tools and industrial equipment. The company operates through three divisions. Each division is an investment center. Operating data for the Home Division for the year ended December 31, 2022, and relevant budget data are as follows.
|
Actual
|
Comparison with Budget
|
||||
|---|---|---|---|---|---|
|
Sales
|
$1,400,000 | $101,000 | favorable | ||
|
Variable cost of goods sold
|
680,000 | 56,000 | unfavorable | ||
|
Variable selling and administrative expenses
|
124,000 | 24,000 | unfavorable | ||
|
Controllable fixed cost of goods sold
|
171,000 | On target | |||
|
Controllable fixed selling and administrative expenses
|
81,000 | On target |
Average operating assets for the year for the Home Division were $2,000,000, which was also the budgeted amount. Prepare a responsibility report for the home division.
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