Torres Company accumulates the following summary data for the year ending December 31, 2020, for its Water Division, which it operates as a profit center: sales—$1,935,600 budget, $2,243,000 actual; variable costs—$1,016,200 budget, $1,051,200 actual; and controllable fixed costs—$297,600 budget, $303,400 actual. Prepare a responsibility report for the Water Division for the year ending December 31, 2020.
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Torres Company accumulates the following summary data for the year ending December 31, 2020, for its Water Division, which it operates as a profit center: sales—$1,935,600 budget, $2,243,000 actual; variable costs—$1,016,200 budget, $1,051,200 actual; and controllable fixed costs—$297,600 budget, $303,400 actual.
Prepare a responsibility report for the Water Division for the year ending December 31, 2020.
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TORRES COMPANY
Water Division Responsibility Report For the Year Ended December 31, 2020 |
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Difference
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Budget
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Actual
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Favorable
Unfavorable Neither Favorable nor Unfavorable |
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Select an opening responsibility report item Contribution MarginControllable Fixed CostsControllable MarginFixed CostsGross ProfitNet Income/(Loss)SalesVariable Costs
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$Enter a dollar amount
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$Enter a dollar amount
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$Enter the difference
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Select an option FavorableUnfavorableNeither Favorable nor Unfavorable
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Select a responsibility report item Contribution MarginControllable Fixed CostsControllable MarginFixed CostsGross ProfitNet Income/(Loss)SalesVariable Costs
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Enter a dollar amount
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Enter a dollar amount
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Enter the difference
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Select an option FavorableUnfavorableNeither Favorable nor Unfavorable
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Select a responsibility report item Contribution MarginControllable Fixed CostsControllable MarginFixed CostsGross ProfitNet Income/(Loss)SalesVariable Costs
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Enter a total of the two previous amounts
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Enter a total of the two previous amounts
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Enter the difference
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Select an option FavorableUnfavorableNeither Favorable nor Unfavorable
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Select a responsibility report item Contribution MarginControllable Fixed CostsControllable MarginFixed CostsGross ProfitNet Income/(Loss)SalesVariable Costs
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Enter a dollar amount
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Enter a dollar amount
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Enter the difference
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Select an option FavorableUnfavorableNeither Favorable nor Unfavorable
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Select a closing responsibility report item Contribution MarginControllable Fixed CostsControllable MarginFixed CostsGross ProfitNet Income/(Loss)SalesVariable Costs
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$Enter a total amount for this statement
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$Enter a total amount for this statement
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$Enter the difference
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Select an option FavorableUnfavorableNeither Favorable nor Unfavorable
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