WileyPLUS Problem 11-7- Google Chrome Secure https://edugen.wileyplus.com/edugen
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WileyPLUS Problem 11-7- Google Chrome Secure https://edugen.wileyplus.com/edugen/shared/assignment/test/qprint.uni Print by: ESSVIN VARGHESE ACCT 207-001-Vanderlinden-winter 18 / Post lecture quiz # 7 Ch 11 WileyPLUS Problem 11-7 The teeth whitening division of Gerry Dental Offices is operated as an investment centre. Sales for the division were budgeted for 2016 at $1,196,500. The variable costs budgeted for the division were materials $443,500 and dental wages $53,000. Fixed costs were budgeted at $173,500 for dentist salary, $119,650 for equipment depreciation, and $68,500 for non-controllable fixed costs. Actual results for these items were as follows: Sales $1,074,500; Materials $373,000; Dental wages $53,000; Dentist salary $173,500; Depreciation $119,650; Non-controllable fixed costs $76,500 It has budgeted and actual average operating assets of $2,000,000 Prepare a responsibility report for the teeth whitening division for 2016 and calculate return on investment. (Round R01 answers to 1 decima, place, e.g. 15.396. List variable costs before fixed costs.) Teeth Whitening Division Responsibility Report year ended December 31, 2016 For the Difference Favourable Unfavourable Neither Favourable nor Unfavourable Budget Actual 11:45 AM Search Windows 493/22/2018 | ^Explanation / Answer
Teeth whitening division
Responsibility report
for the year ended december 31, 2016
Budget
Actual
Difference
Favourable
Unfavourable
Sales
$ 1,196,500
$ 1,074,500
$ 122,000
Less: Variable Costs
Material
$ 443,500
$ 373,000
$ 70,500
Dental Wages
$ 53,000
$ 53,000
Neither favourable nor unfavourable
Total Variable Costs
$ 496,500
$ 426,000
$ 70,500
Contribution (Sales - Variable Costs)
$ 700,000
$ 648,500
$ 51,500
Less: Fixed Costs
Dentist Salary
$ 173,500
$ 173,500
Neither favourable nor unfavourable
Equipment Depreciation
$ 119,650
$ 119,650
Neither favourable nor unfavourable
Non Controllable Fixed Costs
$ 68,500
$ 76,500
$ 8,000
Total Fixed Costs
$ 361,650
$ 369,650
$ 8,000
Profit (Contribution - Fixed Costs)
$ 338,350
$ 278,850
$ 59,500
Average Operating Assets
$ 2,000,000
$ 2,000,000
Neither favourable nor unfavourable
Return on Investment (Profit*100/Average Operating Assets)
16.92%
13.94%
2.98%
Teeth whitening division
Responsibility report
for the year ended december 31, 2016
Budget
Actual
Difference
Favourable
Unfavourable
Sales
$ 1,196,500
$ 1,074,500
$ 122,000
Less: Variable Costs
Material
$ 443,500
$ 373,000
$ 70,500
Dental Wages
$ 53,000
$ 53,000
Neither favourable nor unfavourable
Total Variable Costs
$ 496,500
$ 426,000
$ 70,500
Contribution (Sales - Variable Costs)
$ 700,000
$ 648,500
$ 51,500
Less: Fixed Costs
Dentist Salary
$ 173,500
$ 173,500
Neither favourable nor unfavourable
Equipment Depreciation
$ 119,650
$ 119,650
Neither favourable nor unfavourable
Non Controllable Fixed Costs
$ 68,500
$ 76,500
$ 8,000
Total Fixed Costs
$ 361,650
$ 369,650
$ 8,000
Profit (Contribution - Fixed Costs)
$ 338,350
$ 278,850
$ 59,500
Average Operating Assets
$ 2,000,000
$ 2,000,000
Neither favourable nor unfavourable
Return on Investment (Profit*100/Average Operating Assets)
16.92%
13.94%
2.98%
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