Question

Jazz Division operates as a profit center. It reports the following data.

Answer 1

Answer:

c. $30,000 F

Explanation:

As per the given question the solution of Difference for the controllable margin is provided below:-

To reach at Difference for the controllable margin first we will find the controllable margin of budgeted and controllable margin of actual which are as follows:-

Controllable margin of budgeted = Sales - Variable cost - Fixed cost

= $460,000 - $250,000 - $80,000

= $130,000

and

Controllable margin of Actual = Sales - Variable cost - Fixed cost

= $500,000 - $280,000 - $60,000

= $160,000

finally

Difference  for the controllable margin = Controllable margin of budgeted - Controllable margin of Actual

= $130,000 - $160,000

= -$30,000 Favorable

Here the actual is higher that budgeted so it will be favorable.