P1.533 (LO. 3) Henning Manufacturing Ltd. operates its patio furniture division as a profit centre....
50.1K
Verified Solution
Link Copied!
Question
Accounting
P1.533 (LO. 3) Henning Manufacturing Ltd. operates its patio furniture division as a profit centre. Operating data for this division for the year ended December 31, 2022, are as follows: Difference from Budget Budget Sales $2,500,000 $60,000 F Costs of goods sola Variable costs 1,300,000 41,000 F Controllable fixed costs 200,000 6,000 U Selling and administrative expenses Variable costs 220,000 7,000 U Controllable fixed costs 50,000 Noncontrollable fixed costs 70,000 In addition, Henning Manufacturing incurred $180,000 of indirect fixed costs that were budgeted at $175,000. It allocates 20% of these costs to the patio furniture division. The division manager cannot control any of these costs. Instructions a. Prepare a responsibility report for the patio furniture division for the year. a. Controllable margin: $86,000 F b. Comment on the manager's performance in controlling revenues and costs, c. Identify any costs that have been excluded from the responsibility report and explain why they were excluded 2,000 U 4,000 U
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
