The Deluxe Division a profit center of Riley Manufacturing Company reported the following data for the first quarter of 2016: $\begin{array}{lr}
\text { Sales } & \$ 9,000,000 \
\text { Variable costs } & 6,300,000 \
\text { Controllable direct fixed costs } & 1,200,000 \
\text { Noncontrollable direct fixed costs } & 530,000 \
\text { Indirect fixed costs } & 300,000
\end{array}$ Instructions
(a) Prepare a performance report for the manager of the Deluxe Division.
(b) What is the best measure of the manager's performance? Why?
(c) How would the responsibility report differ if the division was an investment center?

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The Answer of The Deluxe Division a profit center of Riley Manufacturing Company reported the following data for the first quarter of 2016: $\begin{array}{lr}
\text { Sales } & \$ 9,000,000 \
\text { Variable costs } & 6,300,000 \
\text { Controllable direct fixed costs } & 1,200,000 \
\text { Noncontrollable direct fixed costs } & 530,000 \
\text { Indirect fixed costs } & 300,000
\end{array}$ Instructions
(a) Prepare a performance report for the manager of the Deluxe Division.
(b) What is the best measure of the manager's performance? Why?
(c) How would the responsibility report differ if the division was an investment center?

The Deluxe Division a Profit Center of Riley Manufacturing Company