Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Sports Equipment Division of Harrington Company is operated as a profit center. Sales for the division were budgeted for 2020 at $893,000. The only

image text in transcribedimage text in transcribedimage text in transcribed

The Sports Equipment Division of Harrington Company is operated as a profit center. Sales for the division were budgeted for 2020 at $893,000. The only variable costs budgeted for the division were cost of goods sold ($444,000) and selling and administrative ($62,000). Fixed costs were budgeted at $100,000 for cost of goods sold, $91,000 for selling and administrative, and $74,000 for noncontrollable fixed costs. Actual results for these items were: Sales $882,000 Cost of goods sold 415,000 104,000 Variable Fixed Selling and administrative Variable Fixed 66,000 71,000 90,000 Noncontrollable fixed 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 Actual Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Cost of Goods Sold Total Variable Costs Controllable Margin Selling and Administrative Controllable Fixed Costs Total Noncontrollable Fixed Costs Noncontrollable Fixed Costs Gross Profit Sales Contribution Margin Total Controllable Fixed Costs Variable Costs Assume the division is an investment center, and average operating assets were $1,000,000. The noncontrollable fixed costs are controllable at the investment center level. Compute ROl using the actual amounts. (Round ROl to 1 decimal place, e.g. 1.5.) Return on investment eTextbook and Media

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Nursing Audit Self Regulation In Nursing Practice

Authors: Maria C Phaneuf

2nd Edition

0838570054, 978-0838570050

More Books

Students also viewed these Accounting questions