Question

Clarke Inc. operates the Patio Furniture Division as a profit center. Operating data for this division for the year ended December 31, 2017, are as shown below.

Problem 24-4A Your answer is partially correct. Try again Clarke Inc. operates the Patio Furniture Division as a profit center. Operating data for this division for the year ended December 31, 2017, are as shown below. Difference Budget from Budget 2,505,900 47,400 Favorable 1,300,400 44,100 Favorable Sales Cost of goods sold Variable Controllable fixed 204,800 3,200 Unfavorable Selling and administrative Variable Controllable fixed 229,100 51,500 69,500 7,900 Unfavorable 1,000 Unfavorable 3,300 Unfavorable Noncontrollable fixed costs In addition, Clarke incurs $ 177,900 of indirect fixed costs that were budgeted at $ 172,300 . 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. (List variable costs before fixed costs.)

Answer 1

						Difference
				Budget	Actual	Fav/unfav
Sales				2,505,900	2,553,300	47,400	F
Variable costs
Cost of goods sold				1,300,400	1,256,300	44,100	F
Selling and administrative				229,100	237,000	7,900	U
total				1,529,500	1,493,300	36,200	F
contribution margin				976,400	1,060,000	83,600	F
Controllable fixed costs
Cost of goods sold				204,800	208,000	3,200	U
Selling and administrative				51,500	52,500	1,000	U
total controllable fixed cost				256,300	260,500	4,200	U
Controllable margin				720,100	799,500	79,400	F