Questions -
Q1. In Pargo Company's flexible budget graph, the fixed cost line and the total budgeted cost line intersect the vertical axis at $85,900. The total budgeted cost line is $368,620 at an activity level of 58,900 direct labor hours.
Compute total budgeted costs at 74,200 direct labor hours.
Q2. The Rockies Division operates as a profit center. It reports the following for the year.
|
Budgeted
|
Actual
|
|
Sales
|
$2,014,800
|
$1,870,200
|
|
Variable costs
|
804,600
|
741,300
|
|
Controllable fixed costs
|
553,500
|
553,500
|
|
Noncontrollable fixed costs
|
240,600
|
240,600
|
Prepare a responsibility report for the Rockies Division at December 31, 2017.