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2 years ago

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The Real Estate Products Division of McKenzie Co. is operated as a profit center. Sales for the division were budgeted for 2019

at $1,250,000. The only variable costs budgeted for the division were cost of goods sold ($610,000) and selling and administrative ($80,000). Fixed costs were budgeted at $130,000 for the cost of goods sold, $120,000 for selling and administrative, and $95,000 for noncontrollable fixed costs.
Actual results for these items were:

Sales $1,175,000
Cost of goods sold Variable 545,000
Fixed 140,000
Selling and administrative Variable 82,000
Fixed 100,000
Noncontrollable fixed 105,000

Prepare a responsibility report for the Real Estate Products Division for 2019.

1 answer:

LuckyWell [14K]2 years ago

4 0

Answer and Explanation:

The Preparation of responsibility report for the Real Estate Products Division is following below:-

Particulars Budgeted Actual Difference Favorable/

Unfavorable

Sales $1,250,000 $1,175,000 $75,000 Unfavorable

(Sales of Budgeted - Actual)

Variable cost ($610,000) $545,000 $65,000 Favorable

(variable cost of Budgeted - Actual)

Selling and

administration ($80,000) $82,000 $2,000 Unfavorable

(selling and admin. of Budgeted - Actual)

Total variable

cost $690,000 $627,000 $63,000 Favorable

Contribution

margin $560,000 $548,000 $12,000 Unfavorable

(Sales - Total variable cost)

Fixed cost

Cost of goods

sold $130,000 $140,000 $10,000 Unfavorable

Selling and

administration $120,000 $100,000 $20,000 Favorable

Total fixed cost $250,000 $240,000 $10,000 Favorable

(Fixed cost of goods sold + Selling and administration and the difference of these two)

Net operating

income $310,000 $308,000 $2,000 Unfavorable

Therefore to reach the net operating income we will simply deduct the Contribution margin and total fixed cost.

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Answer:

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Trevor always begins the day with a strawberry milkshake (milk (x1 ) and strawberries(x2) mixed in proportion 1:5). His income i

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Answer:

Check the explanation

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Going by the question that the proportion of milk and strawberry for milk shake is 1:5.

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With change in P1 from 15 to 5

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The total change in the demand of milk will increase from 10 units to 20 units.

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<u>2. a, c, d</u>

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2 years ago

Richards Corporation uses the weighted-average method of process costing. The following information is available for October in

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Answer:

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Answer:

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