Clarke Inc. operates the Patio Furniture Division as a profit center. Operating data for this division for the year ended December 31, 2020, are as shown below.

		Budget		Difference from Budget
Sales		$2,500,000		$50,000	Favorable
Cost of goods sold
Variable		1,300,000		41,000	Favorable
Controllable fixed		200,000		3,000	Unfavorable
Selling and administrative
Variable		220,000		6,000	Unfavorable
Controllable fixed		50,000		2,000	Unfavorable
Noncontrollable fixed costs		70,000		4,000	Unfavorable

In addition, Clarke incurs $180,000 of indirect fixed costs that were budgeted at $175,000. Twenty percent (20%) of these costs are allocated to the Patio Furniture Division.

Comment on the managers performance in controlling revenues and costs.

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Question 7 of 7 In addition, Clarke incurs $180,000 of indirect fixed costs that were budgeted at $175,000. Twent allocated to the Patio Furniture Division A CLARKE INC. Patio Furniture Division Responsibility Report For the Year Ended December 31, 2020 Difference Favorable Unfavorable Neither Favorable Budget Actual nor Unfavorable Sales $2,500,000 $2,550,000 $50,000 F Variable costs Cost of goods sold 1,300,000 1.259,000 41.000 F Selling and administrative 220,000 226,000 6,000 U Total 1.520,000 1,485,000 35,000 F Contribution margin 980,000 1,065,000 85,000 F Controllable fixed costs Cost of goods sold 200,000 203,000 3,000 U Selling and administrative 50,000 52,000 2,000 U Total 250,000 255,000 5,000 U Contribution margin $730,000 $810,000 $80,000 F MacBook Pro OOD