I am finding this question and many similar to it uttery overwhelming. Any help

Question

I am finding this question and many similar to it uttery overwhelming. Any help would be very much appreciated.

Actual

Difference
from Budget

In addition, the owners know that the investment in operating assets at the beginning of the month was $80,330, and it was $71,490 at the end of the month. They have asked for your assistance in evaluating their current performance reporting system.

Prepare a responsibility report for an investment center (Round ROI to 1 decimal place, e.g. 1.6.) I have attached a photo of what the Responsibility report for an investment center format look like.

DINKLE AND FRIZELL DENTAL CLINIC
Preventive Services
Responsibility Report
For the Month Ended May 31, 2014

The Dinkle and Frizell Dental Clinic provides both preventive and orthodontic dental services. The two owners, Reese Dinkle and Anita Frizell, operate the clinic as two separate investment centers: Preventive Services and Orthodontic Services. Each of them is in charge of one of the centers: Reese for Preventive Services and Anita for Orthodontic Services. Each month they prepare an income statement for the two centers to evaluate performance and make decisions about how to improve the operational efficiency and profitability of the clinic.

Recently, they have been concerned about the profitability of the Preventive Services operations. For several months, it has been reporting a loss. Shown below is the responsibility report for the month of May 2014.

Actual

Difference
from Budget

Service revenue $41,700 $1,170 F Variable costs:     Filling materials 5,160 110 U     Novocain 4,060 51 U     Supplies 1,890 380 F     Dental assistant wages 2,470 –0– N     Utilities 510 90 U Total variable costs 14,090 129 F Fixed costs:     Allocated portion of receptionist’s salary 2,910 270 U     Dentist salary 9,639 450 U     Equipment depreciation 6,180 –0– N     Allocated portion of building depreciation 14,940 1,230 U Total fixed costs 33,669 1,950 U Operating income (loss) $(6,059 ) $651 U

In addition, the owners know that the investment in operating assets at the beginning of the month was $80,330, and it was $71,490 at the end of the month. They have asked for your assistance in evaluating their current performance reporting system.

Prepare a responsibility report for an investment center (Round ROI to 1 decimal place, e.g. 1.6.) I have attached a photo of what the Responsibility report for an investment center format look like.

DINKLE AND FRIZELL DENTAL CLINIC
Preventive Services
Responsibility Report
For the Month Ended May 31, 2014

Explanation / Answer

I am finding this question and many similar to it uttery overwhelming. Any help

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