The Patio Furniture Division of Clarke Company operates as a profit center. Data for the year 2017 is as follows:

Actual/ Budget

Sales: Actual: $2,550,000 Budget:$2,500,000

Cost of good sold:

Variable (actual ) 1,259,000 (budget) 1,300,000

Fixed ( actual ) 239,000( budget ) 235,000

Selling and administrative:

Variable ( actual) 226,000 ( budget ) 220,000

Fixed (actual) 126,000 (budget )120,000

The budget for fixed cost of goods sold includes $35,000 of indirect fixed costs; the actual for fixed cost of goods sold includes $36,000 of indirect fixed costs. The budget for fixed selling and administrative costs includes $70,000 of indirect fixed costs; the actual for selling and administrative costs includes $74,000 of indirect fixed costs.

A. Prepare a responsibility report for the Patio Furniture Division for 2017.

B. If the Patio Furniture Division was operated as an investment center and the budgeted operating assets were $4,000,000 and the actual operating assets $4,050,000, compute the budgeted and actual return on investment.

Actual/ Sales/ Difference ( favoriable " F " unfavorable " U " )

Sales:

variable costs:

cost of good sold

selling and admin

total variable costs

contribution margin

controllable fixed costs

cost of goods sold

selling and admin

total fixed costs

controllable margin

Please do not leave anything out. Thank you