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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
$101,000
favorable
Variable cost of goods sold
670,000
54,000
unfavorable
Variable selling and administrative expenses
124,000
25,000
Controllable fixed cost of goods sold
169,000
On target
Controllable fixed selling and administrative expenses
80,000
Average operating assets for the year for the Home Division were $2,000,000 which was also the budgeted amount.
Prepare a responsibility report for the Home Division.
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