Suppose Company manufactures a variety of tools and industrial equipment. The co

Question

Suppose 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. Average operating assets for the year for the Home Division were $2,000,350 which was also the budgeted amount. Prepare a responsibility report for the Home Division. (List variable costs before fixed costs. Round ROI to 1 decimal place/ e.g. 1.5%.)

Explanation / Answer

Details Budget Actuals Variance F/U/None Sales 12,98,290.00 13,99,020.00    1,00,730.00 F Variable Cost of Goods Sold     6,20,110.00     6,75,790.00        55,680.00 U Variable Selling And Admin Expenses     1,00,320.00     1,25,160.00        24,840.00 U Contribution Margin     5,77,860.00     5,98,070.00        20,210.00 F Controllable Fixed cost of Goods Sold     1,70,340.00     1,70,340.00                       -   None Controllable Selling And Admin Expenses        79,630.00        79,630.00                       -   None Operating Profit     3,27,890.00     3,48,100.00        20,210.00 F Avergae Operating Assets 20,00,350.00 20,00,350.00                       -   ROI 16.39% 17.40% 1.01% F

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