Reference no: EM132616139
Question - Optimus Company manufactures a variety of tools and industrial equipment. The company operates through three divisions. Each division is an investment center. Operating data for the Home Division for the year ended December 31, 2020, and relevant budget data are as follows.
Actual Comparison with Budget
Sales $1,400,000 $100,000 favorable
Variable cost of goods sold 670,000 56,000 unfavorable
Variable selling and administrative expenses 124,000 26,000 unfavorable
Controllable fixed cost of goods sold 169,000
On target Controllable fixed selling and administrative expenses 81,000
On target Average operating assets for the year for the Home Division were $2,000,000 which was also the budgeted amount.
Required - Prepare a responsibility report for the Home Division.