Swifty Inc. has three divisions which are operated as profit centers. Actual operating data for the divisions listed alphabetically are asfollows.(a)Compute the missing amounts.OperatingWomen's ShoesMen's ShoesChildren's ShoesDataContribution$329,4002$(3)$219,600marginControllablefixed costs122,000(4)(5)Controllable(1)109,800115,900marginSales732,000549,000(6)Variable costs(2)390,400305,000 Prepare a responsibility report for the Women's Shoes Division assuming (1) the data are for the month ended June 30, 2022, and(2) all data equal budget except variable costs which are $6,100 over budget.SWIFTY INC.Women's Shoe DivisionResponsibility ReportDifferenceFavorableUnfavorableNeither FavorableBudgetActualnor Unfavorable$$2424

The question is based on the concept of Cost Accounting.1) Operating Data Women's Shoes Men's shoes Children's shoes Contribution margin $329400 $158600 (3) $219600 Controllable fixed costs 122000 48800 (4) 103700 (5) Controllable margin 207400 (1) 109800 115900 Sales 732000 549000 524600 (6) Variable costs 402600 (2) 390400 305000 Working Note: (1)Controllable Margin = Contribution Margin - Controllable Fixed Cost = 329400 - 122000 = 207400 (2) Variable cost = Sales - Contribution margin = 732000 - 329400 = 402600 (3) Contribution Margin = Sales - Variable Cost = 549000 - 390400 = 158600 (4) Controllable fixed costs = Contribution margin - Controllable margin = 158600 - 109800 = $48800 (5) Controllable fixed costs = Contribution margin - Controllable margin = 219600 - 115900 = 103700 (6) Sales = Contribution margin + Variable cost = 219600 + 305000 = 524600 2) SWIFTY INC. Women's Shoe Division Responsibility Report Difference Favorable Unfavorable Neither favorable nor unfavorable Budget Actual Sales $732000 $732000 $0 Neither favorable nor unfavorable Variable costs 396500 402600 6100 Unfavorable Contribution margin 335500 329400 6100 Unfavorable Controllable fixed costs 122000 122000 0 Neither favorable nor unfavorable Controllable margin $213500 $207400 $6100 Unfavorable Budget Variable Costs = Actual variable cost - 5530 = 402600 - 6100 = $396500

Business

Accounting

Swifty Inc. has three divisions which are operated as profit centers. Actual operating data for the divisions listed alphabetically are as follows. (a) Compute the missing amounts. Operating Women's Shoes Men's Shoes Children's Shoes Data Contribution $329,400 2$ (3) $219,600 margin Controllable fixed costs 122,000 (4) (5) Controllable (1) 109,800 115,900 margin

Swifty Inc. has three divisions which are operated as profit centers. Actual operating data for the divisions listed alphabetically are as follows. (a) Compute the missing amounts. Operating Women's Shoes Men's Shoes Children's Shoes Data Contribution $329,400 2$ (3) $219,600 margin Controllable fixed costs 122,000 (4) (5) Controllable (1) 109,800 115,900 margin

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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