Question

Exercise 22-16 (Part Level Submission)

The Sports Equipment Division of Harrington Company is operated as a profit center. Sales for the division were budgeted for 2017 at $904,930. The only variable costs budgeted for the division were cost of goods sold ($441,160) and selling and administrative ($62,530). Fixed costs were budgeted at $100,550 for cost of goods sold, $93,740 for selling and administrative, and $74,730 for noncontrollable fixed costs. Actual results for these items were:

Sales		$883,910
Cost of goods sold
Variable		414,930
Fixed		106,530
Selling and administrative
Variable		60,880
Fixed		72,660
Noncontrollable fixed		94,690

Prepare a responsibility report for the Sports Equipment Division for 2017. (List variable costs before fixed costs.)

HARRINGTON COMPANY Sports Equipment Division Responsibility Report 2017
	Budget		Actual		Difference
					Favorable Unfavorable Neither Favorable nor Unfavorable

Answer 1

SUPPAN MANUFACTURING COMPANY
Home Division
Responsibility Report
For the year ended december 31, 2014
	Budget	Actual	Difference
Sales	$ 904,930	$ 883,910	$     21,020	U
Less: Variable cost
Cost of goods sold	$ 441,160	$ 414,930	$     26,230	F
Selling and administrative	$    62,530	$    60,880	$       1,650	F
Total variable cost	$ 503,690	$ 475,810	$     27,880	F
Contribution margin	$ 401,240	$ 408,100	$       6,860	F
Less:Controllable direct fixed cost
Cost of goods sold	$ 100,550	$ 106,530	$       5,980	U
Selling and administrative	$    93,740	$    72,660	$     21,080	F
Total controllable direct fixed cost	$ 194,290	$ 179,190	$     15,100	F
Controllable margin	$ 206,950	$ 228,910	$     21,960	F