Ayayai Inc. operates the Patio Furniture Division as a profit center. Operating data for this division for the year ended December 31, 2022, are shown here. Budget Difference from Budget Sales $2,490,000 $45,000 Favorable Cost of goods sold Variable 1,290,000 36,000 Favorable Controllable fixed 190,000 2,000 Unfavorable Selling and administrative Variable 210,000 6,000 Unfavorable Controllable fixed 45,000 1,000 Unfavorable Noncontrollable fixed costs 65,000 3,000 Unfavorable In addition, Ayayai incurs $175,000 of indirect fixed costs that were budgeted at $170,000. 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
Ayayai Inc. operates the Patio Furniture Division as a profit center. Operating data for this division for the year ended December 31, 2022, are shown here. Budget Difference from Budget Sales $2,490,000 $45,000 Favorable Cost of goods sold Variable 1,290,000 36,000 Favorable Controllable fixed 190,000 2,000 Unfavorable Selling and administrative Variable 210,000 6,000 Unfavorable Controllable fixed 45,000 1,000 Unfavorable Noncontrollable fixed costs 65,000 3,000 Unfavorable In addition, Ayayai incurs $175,000 of indirect fixed costs that were budgeted at $170,000. 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
Managerial Accounting: The Cornerstone of Business Decision-Making
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ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
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Chapter13: Emerging Topics In Managerial Accounting
Section: Chapter Questions
Problem 29BEB: Cassara, Inc., had the following quality costs for the years ended December 31, 20X1 and 20X2: At...
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Ayayai Inc. operates the Patio Furniture Division as a profit center. Operating data for this division for the year ended December 31, 2022, are shown here.
In addition, Ayayai incurs $175,000 of indirect fixed costs that were budgeted at $170,000. 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. (List variable costs before fixed costs.)
Budget
|
Difference
from Budget |
||||
---|---|---|---|---|---|
Sales
|
$2,490,000 | $45,000 |
Favorable
|
||
Cost of goods sold
|
|||||
Variable
|
1,290,000 | 36,000 |
Favorable
|
||
Controllable fixed
|
190,000 | 2,000 |
Unfavorable
|
||
Selling and administrative
|
|||||
Variable
|
210,000 | 6,000 |
Unfavorable
|
||
Controllable fixed
|
45,000 | 1,000 |
Unfavorable
|
||
Noncontrollable fixed costs
|
65,000 | 3,000 |
Unfavorable
|
In addition, Ayayai incurs $175,000 of indirect fixed costs that were budgeted at $170,000. 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. (List variable costs before fixed costs.)
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