Jantzen Manufacturing Inc. operates the Patio Furniture Division as a profit center. Operating data for this division for the year ended December 31, 2008, are as shown below.
Sales $2,500,000 $60,000 F
Cost of goods sold
Variable 1,300,000 41,000 F
Controllable fixed 200,000 6,000 U
Selling and administrative
Variable 220,000 7,000 U
Controllable fixed 50,000 2,000 U
Noncontrollable fixed costs 70,000 4,000 U
In addition, Jantzen Manufacturing 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.
Prepare a responsibility report for the Patio Furniture Division for the year.
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The solution prepares responsibility report for the Patio Furniture Division