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MBA, Ph.D in Management
Harvard university
Feb-1997 - Aug-2003
Professor
Strayer University
Jan-2007 - Present
Exercise 10-16
The Sports Equipment Division of Harrington Company is operated as a profit center. Sales for the division were budgeted for 2017 at $900,000. The only variable costs budgeted for the division were cost of goods sold ($440,000) and selling and administrative ($60,000). Fixed costs were budgeted at $100,000Â for cost of goods sold, $90,000Â for selling and administrative, and $70,000Â for noncontrollable fixed costs. Actual results for these items were:
Â
Sales$880,000Cost of goods sold       Variable408,000       Fixed105,000Selling and administrative       Variable61,000       Fixed66,000Noncontrollable fixed90,000
Prepare a responsibility report for the Sports Equipment Division for 2017. (List variable costs before fixed costs.)
Â
HARRINGTON COMPANY
Sports Equipment Division
Responsibility Report
2017
Â
Budget
Actual
Difference
Â
Favorable
Unfavorable
Neither Favorable
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