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Responsibility Report for Patio Furniture Division

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:
Budget from Budget
$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 cost are allocated to the Patio Furniture Division
Prepare a responsibility report for the Patio furniture division for the year

Jantzen Manufacturing Inc.
Patio Furniture Division
Responsibility Report
For Year ended December 31, 2008
Favorable F
Budget Actual Unfavorable U
Variable costs
Cost of goods sold
Selling & Admin
Total variable costs
Contribution margin
Controllable fixed costs
Cost of goods sold
Selling & Admin
Tot. fixed costs
Controllable margin

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Solution Summary

The solution prepares a responsibility report for a patio furniture division over a year.