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Greene Enterprises prepares monthly departmental reports in an effort to control its operating costs. Each department has a manager to whom the report is addressed and who is held responsible for the operating results in his or her department. The report made to Department D for October follows:
Budgeted Actual
Sales $56,000 $63,000
Costs of goods sold 39,200 37,800
Gross margin 16,800 25,200
Direct operating expenses* 16,720 18,000
Contribution to indirect expense $80 $7,200
Required:
Question 1: Can you make a report that will be of more value in analyzing and appraising the performance of the manager of Department D for October and comment on the operating results?
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