4.Clarke Inc. operates the Patio Furniture Division as a profit center. Operating datafor this division for the year ended December 31, 202o, are as shown below.Difference fromBudgetBudgetSales$2,500,000$50,000 FCost of goods soldVariable1,300,00041,000 FControllable fixed200,0003,000 USelling and administrativeVariable220,0006,000 UControllable fixed50,0002,000 UNoncontrollable fixeddirect oy70,0004,000 UcostsIn addition, Clarke incurs $180,000 of indirect fixed costs that were budgeted at$175,000. Twenty percent (20%) of these costs are allocated to the Patio FurnitureDivision.Instructionsa.Prepare a responsibility report for the Patio Furniture Division for the year.b.Comment on the manager's performance in controlling revenues and costs.C.Identify any costs excluded from the responsibility report and explain why they wereexcluded.

a. Prepare a responsibility report for patio furniture division for the year as shown below:

Answered: 4. Clarke Inc. operates the Patio…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter25: Departmental Accounting

Section: Chapter Questions

Problem 1CE

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