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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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