Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Exercise 23-16 (Part Level Submission) The Sports Equipment Division of Harrington Company is operated as a profit center. Sales for the division were budgeted for
Exercise 23-16 (Part Level Submission) The Sports Equipment Division of Harrington Company is operated as a profit center. Sales for the division were budgeted for 2020 at $900,000. The only variable costs budgeted for the division were cost of goods sold ($440,000) and selling and administrative ($60,000). Fixed costs were budgeted at $100,000 for cost of goods sold, $90,000 for selling and administrative, and $70,000 for noncontrollable fixed costs. Actual results for these items were: $880,000 Sales Cost of goods sold Variable Fixed Selling and administrative Variable 408,000 105,000 Fixed 61,000 66,000 90,000 Noncontrollable fixed (a) Your answer is partially correct. Try again. Prepare a responsibility report for the Sports Equipment Division for 2020. (List variable costs before fixed costs.) HARRINGTON COMPANY Sports Equipment Division Responsibility Report For the Year Ended December 31, 2020 Budget Actual Difference Favorable Unfavorable Neither Favorable nor Unfavorable 900000 T Sales 880000 1000 -2000 unfavorable -2 Unfavorable T Variable Costs Cost of Goods Sold 440000 409000 -31000 IT Favorable ) Selling and Administrative 60000 61000 T 000 Unfavorable Total Variable Costs 500000 470000 -30000 -30000 Fav Favorable Contribution Margin 400000 410000 Favorable T Controllable Fixed Costs Cost of Goods Sold 100000 105000 5000 T Unfavorable Selling and Administrative 0000 67000 -23 Favorable Total Controllable Fixed Costs 190000 172000 Favorable Gross Profit Favorable
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started