minutes per unit NA NA 10 o2 Profit Center Performance Repor

minutes per unit N/A N/A 10 o2 Profit Center Performance Report SE4. Complete the following performance report for profit center P for the month ended December 31: Actual Results Master Budget $120 Variance Sales Controllable variable costs: Variable cost of goods sold Variable selling and $ 20 (F) (25) (10) (U) (15) $100 administrative expenses Contribution margin Controllable fixed costs Profit center operating income Performance measures: s? (?) 20 (F) 20 (F) $100 60 S 60 2 20 (F) $0.68 (F) 40 (F) 50 Number of orders processed Average daily sales Number of units sold $4.00 100 Return on Investment tment calculations

Solution

Answer:

Profit Center P

Performance Report

Actual

Variance

Master
Budget

Sales

140

20

F

120

Controllable Variable cost

Cost of goods sold

(25)

(10)

u

(15)

Variable Selling and admin

(15)

(10)

U

(5)

Contribution margin

100

0

100

Controllable Fixed cost

40

20

F

60

Profit Center Operating income

60

20

40

Performance measures:

Number of orders processed

50

20

(F)

30

(50-20)

Average daily sales

4.68

0.68

(F)

4

(4+0.68)

Number of units sold

100

40

(F)

60

(100-40)

Working notes for the above answer is as under

1

Sales =120+20=140

2

Cost of goods sold =25-10=15

3

variance for variable selling and admin=25-10=10 (u)

4

Variance of Contribution margin=20-10-10=0

5

Controllable Fixed cost=60-20=40

6

Profit Center Operating income as per master budget=10-60=40

Profit Center P
Performance Report
	Actual	Variance		Master Budget
Sales	140	20	F	120
Controllable Variable cost
Cost of goods sold	(25)	(10)	u	(15)
Variable Selling and admin	(15)	(10)	U	(5)
Contribution margin	100	0		100
Controllable Fixed cost	40	20	F	60
Profit Center Operating income	60	20		40