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Sunny Co. is operated as a profit center. Sales for the division were budgeted for 2020 at $1,250,000. Variable costs budgeted for the division were cost of goods sold ($610,000) and selling and administrative ($80,000). Fixed costs were budgeted at $130,000 for cost of goods sold, $120,000 for selling and administrative and $95,000 for noncontrollable fixed costs. Actual results for these items were: Sales $1,175,000; Cost of goods sold - Variable $545,000; Cost of goods sold - Fixed $140,000; Selling and administrative - Variable $82,000, Selling and administrative - Fixed $100,000; Noncontrollable fixed $105,000.
Problem a. Make responsibility report for the Real Estate Products Division for 2020.
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