Instructions a. Prepare a responsibility report for the patio furniture division for the year. a. Controllable margin: $86,000 F b. Comment on the manager's performance in controlling revenues and costs. c. Identify any costs that have been excluded from the responsibility report and explain why they were excluded.
Instructions a. Prepare a responsibility report for the patio furniture division for the year. a. Controllable margin: $86,000 F b. Comment on the manager's performance in controlling revenues and costs. c. Identify any costs that have been excluded from the responsibility report and explain why they were excluded.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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please answer the follong question thanks
![Prepare a responsibility report for a profit centre.
P11.53B (LO 3) Henning Manufacturing Ltd. operates its patio furniture division as a
profit centre. Operating data for this division for the year ended December 31, 2022, are
as follows:
Sales
Costs of goods sold
Variable costs
Controllable fixed
costs
Selling and
administrative
expenses
Variable costs
Controllable fixed
costs
Noncontrollable
fixed costs
Budget
$2,500,000
1,300,000
200,000
220,000
50,000
70,000
Difference
from Budget
$60,000 F
41,000 F
6,000 U
7,000 U
2,000 U
4,000 U
In addition, Henning Manufacturing incurred $180,000 of indirect fixed costs that were
budgeted at $175,000. It allocates 20% of these costs to the patio furniture division. The
division manager cannot control any of these costs.
Instructions
a. Prepare a responsibility report for the patio furniture division for the year.
a. Controllable margin: $86,000 F
b. Comment on the manager's performance in controlling revenues and costs.
c. Identify any costs that have been excluded from the responsibility report and explain
why they were excluded.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F422a3402-f0e9-4c20-b89e-5230245172a8%2F5e75580d-6b23-4cc9-9eb8-dff4759506ee%2Feyhhe4d_processed.png&w=3840&q=75)
Transcribed Image Text:Prepare a responsibility report for a profit centre.
P11.53B (LO 3) Henning Manufacturing Ltd. operates its patio furniture division as a
profit centre. Operating data for this division for the year ended December 31, 2022, are
as follows:
Sales
Costs of goods sold
Variable costs
Controllable fixed
costs
Selling and
administrative
expenses
Variable costs
Controllable fixed
costs
Noncontrollable
fixed costs
Budget
$2,500,000
1,300,000
200,000
220,000
50,000
70,000
Difference
from Budget
$60,000 F
41,000 F
6,000 U
7,000 U
2,000 U
4,000 U
In addition, Henning Manufacturing incurred $180,000 of indirect fixed costs that were
budgeted at $175,000. It allocates 20% of these costs to the patio furniture division. The
division manager cannot control any of these costs.
Instructions
a. Prepare a responsibility report for the patio furniture division for the year.
a. Controllable margin: $86,000 F
b. Comment on the manager's performance in controlling revenues and costs.
c. Identify any costs that have been excluded from the responsibility report and explain
why they were excluded.
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