Actual Comparison with Budget Warning Don\'t show me this message again for the

Question

Actual

Comparison with Budget

Warning

Don't show me this message again for the assignment

Ok

Cancel

(a)

SUPPAN MANUFACTURING COMPANY
Home Division
Responsibility Report
For the Year Ended December 31, 2014

Difference

Budget

Actual

Favorable (F)
Unfavorable (U)
Neither Favorable
nor Unfavorable (N)

Suppan 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, 2014, and relevant budget data are as follows.

Actual

Comparison with Budget

Sales $1,400,590 $100,220 favorable Variable cost of goods sold 675,670 54,080 unfavorable Variable selling and administrative expenses 125,730 25,370 unfavorable Controllable fixed cost of goods sold 170,000 On target Controllable fixed selling and administrative expenses 80,270 On target
Average operating assets for the year for the Home Division were $2,000,730 which was also the budgeted amount.

Warning

Don't show me this message again for the assignment

Ok

  

Cancel

  

Explanation / Answer

Answer:

SUPPAN MANUFACTURING COMPANY Home Division Responsibility Report For the Year Ended December 31, 2014 Particulars Budget Actual Difference Difference Sales 1300370 1400590 100220 F Variable cost : cost of goods sold 621590 675670 54080 U Selling & admin. 100360 125730 25370 U Total variable costs 721950 801400 79450 Contribution margin 578420 599190 20770 Controllable direct fixed costs: cost of goods sold 170000 170000 Selling & admin. 80270 80270 Total fixed costs 250270 250270 0 Controllable margin 328150 348920 20770 ROI 25.23513 24.91236

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.