Budget Home Division Responsibility Report $ I Actual Difference Favorable Unfavorable Neither Favorable nor Unfavorable
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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![$
Budget
PRONGHORN COMPANY
Home Division
Responsibility Report
$ I
Actual
$
Difference
NODO
Favorable
Unfavorable
Neither Favorable
nor Unfavorable](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fecb3ccf8-64a3-4f42-90b5-c9c7edf16923%2F06996614-2102-4a08-93e9-d8960d6d4c3f%2Fz6r0zk_processed.jpeg&w=3840&q=75)
![Pronghorn 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.
Sales
Variable cost of goods sold.
Variable selling and administrative expenses
Controllable fixed cost of goods sold
Controllable fixed selling and administrative expenses
Actual
(a)
$1,399,000
680,000
124,000
171,000
81,000
Comparison with Budget
$101.000 favorable
56,000 unfavorable
25,000 unfavorable
On target
On target
Average operating assets for the year for the Home Division were $2,000,000, which was also the budgeted amount.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fecb3ccf8-64a3-4f42-90b5-c9c7edf16923%2F06996614-2102-4a08-93e9-d8960d6d4c3f%2Fq9iqles_processed.jpeg&w=3840&q=75)
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