ACC 560 help A Guide to career/uophelp.com ACC 560 help A Guide to career/uophelp.com | Page 48
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Variable cost of goods sold 665,000 45,000
unfavorable
Variable selling and administrative
expenses 125,000 25,000
unfavorable
Controllable fixed cost of goods sold 170,000On target
Controllable fixed selling and
administrative expenses
80,000On target
Average operating assets for the year for the Home Division were
$2,000,000 which was also the budgeted amount.
Instructions
1.
Prepare a responsibility report (in thousands of dollars)
for the Home Division.
2.
Evaluate the manager's performance. Which items will
likely be investigated by top management?
3.
Compute the expected ROI in 2017 for the Home
Division, assuming the following independent changes to actual
data.
1. Variable cost of goods sold is decreased by 5%.
2. Average operating assets are decreased by 10%.
3. Sales are increased by $200,000, and this increase is
expected to increase contribution margin by $80,000.
Prepare reports for cost centers under responsibility accounting, and
comment on performance of managers.