Question

Torres Company accumulates the following summary data for the year ending December 31, 2020, for its Water Division, which it operates as a profit center: sales—$2,021,500 budget, $2,183,800 actual; variable costs—$1,001,600 budget, $1,044,200 actual; and controllable fixed costs—$299,100 budget, $302,200 actual.

Prepare a responsibility report for the Water Division for the year ending December 31, 2020.

TORRES COMPANY Water Division Responsibility Report For the Year Ended December 31, 2020
						Difference
		Budget		Actual		Favorable Unfavorable Neither Favorable nor Unfavorable
Select an opening responsibility report item Variable CostsSalesFixed CostsControllable Fixed CostsContribution MarginControllable MarginNet Income/(Loss)Gross Profit		$Enter a dollar amount		$Enter a dollar amount		$Enter the difference	Select an option FavorableUnfavorableNeither Favorable nor Unfavorable
Select a responsibility report item SalesVariable CostsContribution MarginControllable MarginControllable Fixed CostsFixed CostsGross ProfitNet Income/(Loss)		Enter a dollar amount		Enter a dollar amount		Enter the difference	Select an option FavorableUnfavorableNeither Favorable nor Unfavorable
Select a responsibility report item Variable CostsControllable Fixed CostsControllable MarginContribution MarginFixed CostsGross ProfitNet Income/(Loss)Sales		Enter a total of the two previous amounts		Enter a total of the two previous amounts		Enter the difference	Select an option FavorableUnfavorableNeither Favorable nor Unfavorable
Select a responsibility report item Contribution MarginFixed CostsVariable CostsSalesGross ProfitControllable Fixed CostsNet Income/(Loss)Controllable Margin		Enter a dollar amount		Enter a dollar amount		Enter the difference	Select an option FavorableUnfavorableNeither Favorable nor Unfavorable
Select a closing responsibility report item Variable CostsGross ProfitControllable MarginFixed CostsNet Income/(Loss)Contribution MarginSalesControllable Fixed Costs		$Enter a total amount for this statement		$Enter a total amount for this statement		$Enter the difference	Select an option FavorableUnfavorableNeither Favorable nor Unfavorable

Answer 1

TORRES COMPANY
Water Division
Responsibility Report
For the Year Ended December 31, 2020
	Budget	Actual	Difference
Sales	2021500	2183800	162300	Favorable
Variable Costs	1001600	1044200	42600	Unfavorable
Contribution Margin	1019900	1139600	119700	Favorable
Controllable Fixed Costs	299100	302200	3100	Unfavorable
Controllable Margin	720800	837400	116600	Favorable