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…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Required: (for peso value round off to P1.00; two decimal places for percentage) Using the step down method, allocate service department costs to producing departments and calculate the overhead rates for each producing department
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Using the data below for the Ace Guitar Company: Sales Cost of goods sold Selling expenses Support department expenses: Purchasing Payroll accounting A Region A Region Operating Income B Region Operating Income $544,000 206,700 130,600 B Region $ $816,000 310,100 195,800 Allocate support department expenses proportional to the sales of each region. Determine the divisional operating income for the A and B regions. For interim calculations, round percentages to two decimal places and all other amounts to the nearest whole dollar. $228,500 152,300
Using the following data for Ace Guitar Company: A Region Sales Cost of goods sold Selling expenses Support department expenses: Purchasing Payroll accounting $781,000 296,800 187,400 A Region Operating Income B Region Operating Income B Region $639,000 242,800 153,400 $238,600 159,000 Allocate support department expenses proportional to the sales of each region. Determine the divisional operating income for the A and B regions.
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2.)
Revenue and cost details for a company’s single product are as follows: BWP per unit BWP per unit Sales price 27 Variable cost 15 Fixed cost 8 Profit (23) 4 Fixed costs are absorbed based on the company’s normal activity, which is also the company’s budgeted sales value for each period. Last period there were no changes in inventory and the company achieved a margin of safety of 20% of the actual sales volume. Fixed costs were over-absorbed by P2,400. Calculate the breakeven point in units for each period.
Using the data below for the Ace Guitar Company: A Region B Region Sales $521,500 $968,500 Cost of goods sold 198,200 368,000 Selling expenses 125,200 232,400 Service department expenses Purchasing $250,300 Payroll accounting 166,900 Allocate service department expenses proportional to the sales of each region. Determine the divisional income from operations for the A and B regions. For interim calculations, round percentages to one decimal place. A Region $ B Region $
Rundle Corporation has three divisions, each operating as a responsibility center. To provide an incentive for divisional executive officers, the company gives divisional management a bonus equal to 19 percent of the excess of actual net income over budgeted net income. The following is Atlantic Division's current year's performance. Sales revenue Cost of goods sold Gross profit Selling & administrative expenses Net income Current Year $4,070,000 2,460,000 1,610,000 820,000 $ 790,000 The president has just received next year's budget proposal from the vice president in charge of Atlantic Division. The proposal budgets a 6 percent increase in sales revenue with an extensive explanation about stiff market competition. The president is puzzled. Atlantic has enjoyed revenue growth of around 11 percent for each of the past five years. The president had consistently approved the division's budget proposals based on 6 percent growth in the past. This time, the president wants to show that he…
Operating income for profit center The centralized Data Analytics Department of Drewlink Company has expenses of $340,000. The department has provided a total of 8,000 hours of service for the period. The Retail Division has used 2,000 hours of data analytics service during the period, and the Commercial Division has used 6,000 hours of data analytics service. Additional data for the two divisions is following below: Retail Division Commercial Division Sales Cost of goods sold $2,550,000 1,450,000 $1,700,000 -750,000 230,000 170,000 Selling expenses Determine the divisional operating income for the Retail Division and the Commercial Division. Do not round interim calculations. Drewlink Company Divisional Operating income Line Item Description Retail Division Commercial Division Sales Cost of goods sold Support department allocations X Operating income Feedback

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