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Question 21 Danner Co. has three divisions which are operated as profit centers. Actual operating data...

Question 21

Danner Co. has three divisions which are operated as profit centers. Actual operating data for the divisions listed alphabetically are as follows.
Operating Data Women's Shoes Men's
Shoes
Children's Shoes
Contribution margin $280,000 (3) $220,000
Controllable fixed costs 130,000 (4) (5)
Controllable margin (1) $90,000 96,000
Sales 800,000 480,000 (6)
Variable costs (2) 330,000 250,000
Compute the missing amounts.
Operating Data Women's Shoes Men's Shoes Children's Shoes
Contribution margin $280,000 $

(3)
$220,000
Controllable fixed costs 130,000

(4)

(5)
Controllable margin

(1)
90,000 96,000
Sales 800,000 480,000

(6)
Variable costs

(2)
330,000 250,000
Prepare a responsibility report for the Women's Shoe Division assuming (1) the data are for the month ended June 30, 2019, and (2) all data equal budget except variable costs which are $20,000 over budget.
DANNER CO.
Women's Shoe Division
Responsibility Report
For the Month Ended June 30, 2019
Difference
Budget Actual Favorable (F)
Unfavorable (U)
Not Applicable (NA)

SalesVariable CostsControllable MarginContribution MarginControllable Fixed Costs

$

$

$

FNAU

Controllable Fixed CostsControllable MarginSalesContribution MarginVariable Costs

NAUF

Controllable MarginSalesVariable CostsControllable Fixed CostsContribution Margin

UFNA

Contribution MarginControllable Fixed CostsVariable CostsControllable MarginSales

FNAU

Controllable MarginContribution MarginSalesControllable Fixed CostsVariable Costs

$

$

$

NAFU

0 0
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Operating Data Women's Shoe Men's Shoe Children's Shoe
Contribution Margin $          2,80,000 $   1,50,000 $            2,20,000
Controllable Fixed cost $          1,30,000 $       60,000 $            1,24,000
Controllable margin $          1,50,000 $       90,000 $               96,000
Sales $          8,00,000 $   4,80,000 $            4,70,000
Variable cost $          5,20,000 $   3,30,000 $            2,50,000
Danner Company
Women's Shoe Division
Responsibility Report
For the month ended June 30, 2019
Budget Actual Difference
Sales $          8,00,000 $   8,00,000 $                         -   Neither Favorable nor Unfavorable
Variable cost $          5,00,000 $   5,20,000 $               20,000 Unfavorable
Contribution Margin $          3,00,000 $   2,80,000 $               20,000 Unfavorable
Controllable Fixed cost $          1,30,000 $   1,30,000 $                         -   Neither Favorable nor Unfavorable
Controllable margin $          1,70,000 $   1,50,000 $               20,000 Unfavorable

1 Operating Data Womens Shoe 2 Contribution Margin 280000 3 Controllable Fixed c 130000 4 Controllable margin =B2-B3 5 Sales

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