Problem 10-4A b-c (Essay) 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. Difference Budget from Budget $2,500,000 $50,000 Favorable 1,300,000 41,000 Favorable 200,000 3,000 Unfavorable Sales Cost of goods sold Variable Controllable fixed Selling and administrative Variable Controllable fixed Noncontrollable fixed costs 220,000 50,000 70,000 6,000 Unfavorable 2,000 Unfavorable 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. CLARKE INC. Patio Furniture Division Responsibility Report For the Year Ended December 31, 2020 Difference Favorable Unfavorable Neither Favorable nor Unfavorable $50,000 F Budget $2,500,000 Actual $2,550,000 Sales Variable costs Cost of goods sold Selling and administrative Total Contribution margin Controllable fixed costs Cost of goods sold Selling and administrative Total Contribution margin 1,300,000 220,000 1,520,000 980,000 1,259,000 226,000 1,485,000 1,065,000 41,000 F 6,000 U 35,000 F 85,000 F 200,000 50,000 250,000 $730,000 203,000 52,000 255,000 $810,000 3,000 U 2,000 U 5,000 u $80,000 F Comment on the manager's performance in controlling revenues and costs. Identify any costs excluded from the responsibility report and explain why they were excluded