The Sports Equipment Division of Harrington Company is opera

The Sports Equipment Division of Harrington Company is operated as a profit center. Sales for the division were budgeted for 2017 at $902,740. The only variable costs budgeted for the division were cost of goods sold ($443,240) and selling and administrative ($63,640). Fixed costs were budgeted at $100,220 for cost of goods sold $90,230 for selling and administrative, and $74,670 for noncontrollable fixed costs. Actual results for these items were: Sales $884,750 Cost of goods sold 414,210 107,600 Variable Fixed Selling and administrative 65,150 74,620 89,560 Variable Fixed Noncontrollable fixed ? (a) 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

Solution

Budget Actual difference Sales 902,740 884,750 17,990 U Vairbale costs cost of goods sold 443,240 414,210 29,030 F Selling and administrative 63,640 65,150 1,510 U total variable costs 506,880 479,360 27,520 F Contribution margin 395,860 405,390 9,530 F Controllable fixed costs cost of godos sold 100,220 107,600 7,380 U Selling and administrative 90,230 74,620 15,610 F total controllable fixed cost 190,450 182,220 8,230 F controllable margin 205,410 223,170 17,760 F