Question

Exercise 10-15 Horatio Inc. has three divisions which are operated as profit centers. Actual operating data for the divisions listed alphabetically are as follows: Compute the missing amounts. Women's Shoes $281,880 104,400 Men's Shoes Children's Shoes Operating Data Contribution margin Controllable fixed costs Controllable margin Sales Variable costs (3) $187,920 99,180 93,960 626,400 469,800 334,080 261,000 Prepare a responsibility report for the Women's Shoes Division assuming (1) the data are for the month ended June 30, 2017, and (2) all data equal budget except variable costs which are $5,220 over budget. HORATIO INC. Women's Shoe Division Responsibility Report For the Month Ended June 30, 2017 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Click if you would like to Show Work for this question: Open Show Work

Answer 1

				Women's	Men's	Children's
	Operating data			shoes	Shoes	Shoes
	Contribution margin			281,880	135,720	187,920
	controllable fixed costs			104,400	41,760	88,740
	Controllable margin			177,480	93,960	99,180
	Sales			626,400	469,800	448,920
	Variable costs			344,520	334,080	261,000
			Women's Shoe Division
			Responsibility Report
				Budget	Actual	Difference
	Sales			626,400	626,400	0	N
	variable cost			344,520	349,740	5,220	U
	contribution margin			281,880	276,660	5,220	U
	controllable fixed cost			104,400	104,400	0	N
	Controllable margin			177,480	172,260	5,220	U