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Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter11: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 11.18E
Related questions
Question
Qd 54.
![Blue Spruce 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
$1,399,000
680,000
124,000
170,000
81,000
Comparison with Budget
$100,000 favorable
54,000 unfavorable
24,000
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%2Fc9023a21-43a5-43a0-b867-005c5c075120%2F362b3a88-89f5-480e-822c-f9a53f033682%2F5rhd9z_processed.png&w=3840&q=75)
Transcribed Image Text:Blue Spruce 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
$1,399,000
680,000
124,000
170,000
81,000
Comparison with Budget
$100,000 favorable
54,000 unfavorable
24,000
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.
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Transcribed Image Text:tA
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