Doggone, Inc., has four operating divisions that reported the following results for 20x6.

REQUIRED:

a. Compute the variances by line item for Doggone, Inc.’s four divisions and company total.

b. Which divisions are performing better than expected?

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Doggone, Inc. (stated in millions) Line Item Division A Division B Division C Division D Doggone, Inc. Actual Budget Actual Budget Actud Budget Actud Budget Actual Budget Sales $37.3 $39.4 $88.5 $82.3 $46.5 $42.8 $86.5 $74.2 $258.8 $238.7 Less: Cost of Goods Sold $17.9 $18.5 $45.1 $45.4 $21.9 $20.5 $38.9 $34.9 $123.8 $119.4 Gross Margin $19.4 $20.9 $43.4 $36.9 $24.6 $22.3 $47.6 $39.3 $135.0 $119.3 Less: SG&A $10.3 $10.6 $20.8 $17.3 $12.8 $11.4 $23.3 $18.1 $67.2 $57.4 Income Before Tax $9.1 $10.2 $22.5 $19.5 $11.8 $10.9 $24.3 $21.2 $67.8 $61.9