minutes per unit N/A N/A 10 o2 Profit Center Performance Report SE4. Complete th
ID: 2404418 • Letter: M
Question
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 calculationsExplanation / Answer
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
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