The Real Estate Products Division of Ivanhoe Co. is operated as a profit center. Sales for the division were budgeted for 2022 at$1,260,000. The only variable costs budgeted for the division were cost of goods sold ($618,000) and selling and administrative($84,000). Fixed costs were budgeted at $136,000 for cost of goods sold, $126,000 for selling and administrative costs, and $99,000for noncontrollable fixed costs. Actual results for these items were as follows:SalesCost of goods soldVariableFixed$1,187,572551,000150,000Selling andadministrativeVariableFixed90,000104,000Noncontrollable fixed109,000Prepare a responsibility report for the Real Estate Products Division for 2022. (List variable costs before fixed costs.)IVANHOE CO.Real Estate Products DivisionResponsibility Report2022Budget$$Actual$DifferenceFavorable (F)Unfavorable (U)Not Applicable (NA

The responsibility report for the year 2022 is presented hereunder:…

Answered: The Real Estate Products Division of…

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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The sports equipment division of Kevin Hall Company is operated as a profit centre. Sales for the division were budgeted for 2022 at $896,000. The only variable costs budgeted for the division were cost of goods sold ($442,000) and selling and administrative costs ($64,000). Fixed costs were budgeted at $102,000 for cost of goods sold, $92,000 for selling and administrative costs, and $75,000 for noncontrollable fixed costs. Actual results were as follows: Sales $864,000 Cost of goods sold Variable 416,000 Fixed 106,000 Selling and administrative costs Variable 65,000 Fixed 73,000 Noncontrollable fixed costs 91,000 Assume the division is an investment centre, and average operating assets were $1,000,000. What is ROI?
The Real Estate Products Division of McKenzie Co. is operated as a profit center. Sales for the division were budgeted for 2016 at $1,250,000. The only variable costs budgeted for the division were cost of goods sold ($610,000) and selling and administrative ($80,000). Fixed costs were budgeted at $130,000 for cost of goods sold, $120,000 for selling and administrative and $95,000 for noncontrollable fixed costs. Actual results for these items were: Sales $1,175,000 Cost of goods sold Variable 545,000 Fixed 140,000 Selling and administrative Variable 82,000 Fixed 100,000 Noncontrollable fixed 105,000 Instructions (a) Prepare a responsibility report for the Real Estate Products Division for 2016. (b) Assume the division is an investment center, and average operating assets were $1,200,000. Compute Return On Investment(ROI).
The Camping Division of JA Company is operated as a profit center. Sales for the division were budgeted for 2020 at $694,000, The only variable costs budgeted for the division were cost of goods sold ($342,000) and selling and administrative ($48,000). Fixed costs were budgeted at $79,000 for cost of goods sold, $71,000 for selling and administrative, and $68,000 for noncontrollable fixed costs. Actual results for these items were: Sales $673,000 Cost of goods sold Variable 318,000 Fixed 84,000 Selling and administrative Variable 49,000 Fixed 52,000 Noncontrollable fixed 68,000
The fixed costs of operating the Bunatta Corp. are $4,800,000 annually. Variable costs are incurred at the rate of $25 per maintenance-hour. On average, the company incurs 38,000 maintenance-hours per year. Budgeted and actual hours per user for 2019 are as follows: Assume that budgeted maintenance-hours are used to calculate the allocation rates. Using a single-rate allocation and budgeted usage, how much will each department be allocated? Using a dual-rate allocation with fixed costs allocated according to budgeted hours and variable costs allocated to actual hours, how much overhead will each department be allocated?
C. The Motorcycle Division of Maliha Co. is operated as a profit center. Sales for the division were budgeted for 2020 at $1,250,000. The only variable costs budgeted for the division were cost of goods sold ($610,000) and selling and administrative ($80,000). Fixed costs were budgeted at $130,000 for cost of goods sold, $120,000 for selling and administrative and $95,000 for noncontrollable fixed costs. Actual results for these items were: Sales $1,175,000 Cost of goods sold Variable 545,000 Fixed 140,000 Selling and administrative Variable 82,000 Fixed 100,000 Noncontrollable fixed 105,000 Instructions (a) Prepare a responsibility report for the Motorcycle Products Division for 2020. (b) Assume the division is an investment center, and average operating assets were $1,200,000. Compute ROI.
Nanda Company has two service departments, Maintenance and Personnel. Maintenance Department costs of P160,000 are allocated on the basis of budgeted maintenance-hours. Personnel Department costs of P40,000 are allocated based on the number of employees. The costs of operating departments A and B are P80,000 and P120,000, respectively. Data on budgeted maintenance-hours and number of employees are as follows: Support Departments Production Departments Maintenance A B Department Budgeted costs P160,000 P40,000 P80,000 P120,000 Budgeted ΝΑ 400 480 320 maintenance-hours Number of employees 20 ΝΑ 80 240 Using the step-down method, what amount of Maintenance Department cost will be allocated to Department A if the service department with the highest percentage of interdepartmental support service is allocated first? (Round up) Personnel Department
Torres Company accumulates the following summary data for the year ending December 31, 2020, for its Water Division, which it operates as a profit center: sales—$1,935,600 budget, $2,243,000 actual; variable costs—$1,016,200 budget, $1,051,200 actual; and controllable fixed costs—$297,600 budget, $303,400 actual.Prepare a responsibility report for the Water Division for the year ending December 31, 2020. TORRES COMPANYWater DivisionResponsibility ReportFor the Year Ended December 31, 2020 Difference Budget Actual FavorableUnfavorableNeither Favorablenor Unfavorable Select an opening responsibility report item Contribution MarginControllable Fixed CostsControllable MarginFixed CostsGross ProfitNet Income/(Loss)SalesVariable Costs $Enter a dollar amount $Enter a dollar amount $Enter the difference Select an option…
Gulf States Manufacturing has the following data from year 1 operations, which are to be used for developing year 2 budget estimates: Sales revenues (37,500 units) $ 2,500,000 Manufacturing costs Materials $ 400,000 Variable cash costs 545,000 Fixed cash costs 216,000 Depreciation (fixed) 267,000 Marketing and administrative costs Marketing (variable, cash) 285,000 Marketing depreciation 67,800 Administrative (fixed, cash) 270,300 Administrative depreciation 25,200 Total costs $ 2,076,300 Operating profits $ 423,700 All depreciation charges are fixed. Old manufacturing equipment with an annual depreciation charge of $29,100 will be replaced in year 2 with new equipment that will incur an annual depreciation charge of $42,000. Sales volume and prices are expected to increase by 8 percent and 3 percent, respectively. On a per-unit basis, expectations are that materials costs will increase by 6 percent and variable…
Torres Company accumulates the following summary data for the year ending December 31, 2020, for its Water Division, which it operates as a profit center: sales-$2,062,700 budget, $2,288,100 actual; variable costs-$1,000,900 budget, $1,055,500 actual; and controllable fixed costs-$299,000 budget, $303,900 actual. Prepare a responsibility report for the Water Division for the year ending December 31, 2020. TORRES COMPANY Water Division Responsibility Report For the Year Ended December 31, 2020
During 2022, Sunland Corp. produced 37,200 units and sold 37,200 for $16.00 per unit. Variable manufacturing costs were $6.00 per unit. Annual fixed manufacturing overhead was $74,400 ($2.00 per unit). Variable selling and administrative costs were $2.00 per unit sold, and fixed selling and administrative expenses were $18,600. Suppose the accountant for Sunland Corp. uses normal-absorption costing and uses the budgeted volume of 46,500 units to allocate the fixed overhead rather than the actual production volume of 37,200 units. The company expenses production volume variance to cost of goods sold in the accounting period in which it occurs.
Bramble 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 56,000 unfavorable Variable selling and administrative expenses 124,000 24,000 unfavorable Controllable fixed cost of goods sold 171,000 On target Controllable fixed selling and administrative expenses 81,000 On target Average operating assets for the year for the Home Division were $2,000,000, which was also the budgeted amount. Prepare a responsibility report for the home division.
For the year ending December 31, 2022, Concord Company accumulates the following data for the Plastics Division, which it operates as an investment center: contribution margin-$612,950 budget, $622,669 actual; controllable fixed costs-$302,000 budget, $305,500 actual. Average operating assets for the year were $2,073,000. Prepare a responsibility report for the Plastics Division beginning with contribution margin for the year ending December 31, 2022. (Round ROI to 1 decimal place, e.g. 1.5%.) CONCORD COMPANY Plastics Division Responsibility Report For the Year Ended December 31, 2022 Budget Actual Contribution Margin $ $ eTextbook and Media %24 %24 %24 %24 %24 > > >

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