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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

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.

Budget

Difference from Budget

Sales $2,504,600 $52,400

Favorable

Cost of goods sold
Variable 1,296,800 40,700

Favorable

Controllable fixed 202,600 3,400

Unfavorable

Selling and administrative
Variable 229,700 6,900

Unfavorable

Controllable fixed 53,200 1,800

Unfavorable

Noncontrollable fixed costs 65,800 3,600

Unfavorable

In addition, Clarke incurs $184,000 of indirect fixed costs that were budgeted at $172,100. 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.

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