Current Attempt in Progress Concord Company manufactures a variety of tools and industrial equipment. The company operates through three divisions. Each division is an investment center. Operating data for the Home Division for the year ended December 31, 2022, and relevant budget data are as follows. Actual Comparison with Budget Sales $1,400,000 $101,000 favorable Variable cost of goods sold 680,000 55,000 unfavorable Variable selling and administrative expenses 124,000 24,000 unfavorable Controllable fixed cost of goods sold 169,000 On target Controllable fixed selling and administrative expenses 79,000 On target Average operating assets for the year for the Home Division were $2,000,000, which was also the budgeted amount. (a) Prepare a responsibility report for the Home Division. (List variable costs before fixed costs. Round ROI to 2 decimal places, e.g. 1.57%.) CONCORD COMPANY Home Division Responsibility Report choose the accounting period
Current Attempt in Progress Concord Company manufactures a variety of tools and industrial equipment. The company operates through three divisions. Each division is an investment center. Operating data for the Home Division for the year ended December 31, 2022, and relevant budget data are as follows. Actual Comparison with Budget Sales $1,400,000 $101,000 favorable Variable cost of goods sold 680,000 55,000 unfavorable Variable selling and administrative expenses 124,000 24,000 unfavorable Controllable fixed cost of goods sold 169,000 On target Controllable fixed selling and administrative expenses 79,000 On target Average operating assets for the year for the Home Division were $2,000,000, which was also the budgeted amount. (a) Prepare a responsibility report for the Home Division. (List variable costs before fixed costs. Round ROI to 2 decimal places, e.g. 1.57%.) CONCORD COMPANY Home Division Responsibility Report choose the accounting period
Cornerstones of Cost Management (Cornerstones Series)
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Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 10CE: Coral Seas Jewelry Company makes and sells costume jewelry. For the coming year, Coral Seas expects...
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Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
Current Attempt in Progress
Concord Company manufactures a variety of tools and industrial equipment. The company operates through three divisions. Each division is an investment center. Operating data for the Home Division for the year ended December 31, 2022, and relevant budget data are as follows.
Average operating assets for the year for the Home Division were $2,000,000, which was also the budgeted amount.
|
Actual
|
Comparison with Budget
|
||||
|---|---|---|---|---|---|
|
Sales
|
$1,400,000 | $101,000 | favorable | ||
|
Variable cost of goods sold
|
680,000 | 55,000 | unfavorable | ||
|
Variable selling and administrative expenses
|
124,000 | 24,000 | unfavorable | ||
|
Controllable fixed cost of goods sold
|
169,000 | On target | |||
|
Controllable fixed selling and administrative expenses
|
79,000 | On target |
Average operating assets for the year for the Home Division were $2,000,000, which was also the budgeted amount.
(a)
Prepare a responsibility report for the Home Division. (List variable costs before fixed costs. Round ROI to 2 decimal places, e.g. 1.57%.)
|
CONCORD COMPANY
Home Division Responsibility Report choose the accounting period |
||||
|---|---|---|---|---|
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Compute the expected
Transcribed Image Text:Compute the expected ROI in 2022 for the Home Division, assuming the following independent changes to actual data.
(Round ROI to 2 decimal places, e.g. 1.57%.)
(1)
(2)
(3)
Variable selling and administrative expenses are decreased by 7%.
Average operating assets are decreased by 20.0%.
Sales are increased by $200,000, and this increase is expected to
increase contribution margin by $86,000.
The expected ROI
do
%
do
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%
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