Hh1.Account ActualBudget$$AJUUUV>>>>>>>> The Dinkle and Frizell Dental Clinic provides both preventive and orthodontic dental services. The two owners, Reese Dinkle and Anita Frizell, operate the clinic as twoseparate investment centers, Preventive Services and Orthodontic Services. Each of them is in charge of one of the centers: Reese for Preventive Services and Anita forOrthodontic Services. Each month, they prepare an income statement for the two centers to evaluate performance and make decisions about how to improve theoperational efficiency and profitability of the clinicRecently, they have been concerned about the profitability of the Preventive Services operations. For several months, it has been reporting a loss. The responsibility reportfor the month of May 2020 is shown below.Service revenueVariable costsFilling materialsNovocainSuppliesDental assistant wagesUtilitiesTotal variable costsFixed costsAllocated portion of receptionist's salaryDentist salaryEquipment depreciationAllocated portion of building depreciationTotal foxed costsOperating income (los)Actual$41.0305,0503,9401.9102,46047013,8303,04010.3005,92015.06034.320$(7,120)Differencefrom Budget$1.250 Favorable130 Unfavorable120 Unfavorable420 Favorable-0- Neither Favorable nor Unfavorable100 Unfavorable70 Favorable290 Unfavorable460 Unfavorable-0- Neither Favorable nor Unfavorable1080 Unfavorable1830 Unfavorable$510 UnfavorableIn addition, the owners know that the investment in operating assets at the beginning of the month was $84,580, and it was $73.630 at the end of the month. They haveasked for your assistance in evaluating their current performance reporting systemPrepare an investment center responsibility report for the Preventative Services segment for May 2020. (Round ROI to 1 decimal place, eg. 1.5J

Variance analysis is the analysis of the variations or deviations between the actual figures and…

Answered: Prepare an investment center…

Prepare an investment center responsibility report for the Preventative Services segment for May 2020. Round ROI to 1 decimal place, eg. 1.5%)

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 15E

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