Prepare a responsibility report for the Patio Furniture Division for the year.
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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, 2020, are as shown below.
|
Budget
|
Difference
from Budget |
||||
| Sales | $2,490,200 | $48,000 |
Favorable
|
||
| Cost of goods sold | |||||
| Variable | 1,295,300 | 37,500 |
Favorable
|
||
| Controllable fixed | 197,900 | 2,500 |
Unfavorable
|
||
| Selling and administrative | |||||
| Variable | 211,700 | 6,800 |
Unfavorable
|
||
| Controllable fixed | 50,200 | 1,800 |
Unfavorable
|
||
| Noncontrollable fixed costs | 68,900 | 4,700 |
Unfavorable
|
In addition, Clarke incurs $183,100 of indirect fixed costs that were budgeted at $175,500. Twenty percent (20%) of these costs are allocated to the Patio Furniture Division.
Prepare a responsibility report for the Patio Furniture Division for the year.
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