Problem

The Olive Garden Division, a part of the Darden Corporation, reported the following data for the first quarter of 2016:

                                               Budget          Actual

Sales Revenue                               $ 850,000       $ 900,000

Cost of Goods Sold

   Variable                                     300,000         290,000

   Controllable Fixed                           100,000         120,000

Selling and Administrative

    Variable                                    200,000         210,000

    Controllable Fixed                          150,000         170,000

Other fixed costs                               50,000         40,000

Average operating assets                     $2,200,000     $2,400,000

INSTRUCTIONS

Assume that Olive Garden is an investment center. Prepare a responsibility performance report for the manager of the IHOP division.