ACC 560 help A Guide to career/uophelp.com ACC 560 help A Guide to career/uophelp.com | Page 48

00 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.