Dinkle Manufacturing Company manufactures a variety of tools and industrial equi
ID: 2387639 • Letter: D
Question
Dinkle Manufacturing 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, 2010, and relevant budget data are as follows.
Actual
Comparison
with Budget
Sales
$1,500,000
$100,000
favorable
Variable cost of goods sold
700,000
60,000
unfavorable
Variable selling and administrative expenses
125,000
25,000
unfavorable
Controllable fixed cost of goods sold
170,000
On target
Controllable fixed selling and administrative expenses
80,000
On target
Average operating assets for the year for the Home Division were $2,500,000 which was also the budgeted amount.
Complete the responsibility report for the Home Division. (If answer is zero, please enter 0, do not leave any fields blank. Round ROI to 1 decimal place, e.g. 0.2.)
DINKLE MANUFACTURING COMPANY
Home Division
Responsibility Report
For the Year Ended December 31, 2010
Difference
Favorable F
Budget
Actual
Unfavorable U
Sales
$__________
$_________
$_________
Variable costs
_________
_________
_________
Cost of goods sold
Selling & admin.
Total variable costs
Contribution margin
Contr. direct fixed costs
_________
_________
_________
Cost of goods sold
Selling & admin.
Tot. fixed costs
Controllable margin
$_________
$_________
$_________
_________
_________
_________
ROI
%_________
%_________
%_________
Compute the expected ROI in 2011 for the Home Division, assuming the following independent changes to actual data. (Round answers to 1 decimal place, e.g. 5.1.)
1.
%_________
2
%_________
3.
%_________
Dinkle Manufacturing 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, 2010, and relevant budget data are as follows.
Actual
Comparison
with Budget
Sales
$1,500,000
$100,000
favorable
Variable cost of goods sold
700,000
60,000
unfavorable
Variable selling and administrative expenses
125,000
25,000
unfavorable
Controllable fixed cost of goods sold
170,000
On target
Controllable fixed selling and administrative expenses
80,000
On target
Average operating assets for the year for the Home Division were $2,500,000 which was also the budgeted amount.
Explanation / Answer
DINKLE MANUFACTURING COMPANY
Home division
Responsibility report
For the year ended December 31,2011
Particulars
Actual
DINKLE MANUFACTURING COMPANY Home division Responsibility report For the year ended December 31,2010 Particulars Budget Actual Difference Sales $100,000 $1,500,000 1,400,000 F Variable costs Cost of goods sold 60,000 700,000 640000 u Selling and administration 25,000 125,000 100,000 U Total variable costs 85,000 825,000 740,000 Contribution margin 15,000 675,000 660,000 Controllable direct fixed costs Cost of goods sold 11,333 170,000 158,667 Selling and administration costs 5,333 80,000 74,667 Total fixed costs 16,666 250,000 233,334 Controllable margin -1,666 425,000 426,666 ROI -0.083 2.125 0Related Questions
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