Prepare a responsibility report for the home division

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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

unfavorable

Controllable fixed cost of goods sold

169,000

On target


Controllable fixed selling and administrative expenses

80,000

On target


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.

Reference no: EM133174629

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