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$100,000favorableVariable cost of goods sold670,00056,000unfavorableVariable selling and administrative expenses124,00026,000unfavorableControllable fixed cost of goods sold169,000On targetControllable fixed selling and administrative expenses81,000On target

Average operating assets for the year for the Home Division were $2,000,000which was also the budgeted amount.

(a)

Prepare an responsibility report for the Home Division.(List variable costs before fixed costs. Round ROI to 2 decimal places, e.g. 1.57%.)

OPTIMUS COMPANY

Home Division

Responsibility Report

For the Year Ended December 31, 2020

Difference

Budget

Actual

Favorable

Unfavorable

Neither Favorable

nor Unfavorable

Total Variable Costs

Selling and Administrative

Controllable Margin

Controllable Direct Fixed Costs

Gross Profit

Cost of Goods Sold

Sales

Variable Costs

Total Controllable Direct Fixed Costs

Contribution Margin

$$$

Favorable

Unfavorable

Neither Favorable nor Unfavorable

Controllable Margin

Sales

Cost of Goods Sold

Total Variable Costs

Controllable Direct Fixed Costs

Total Controllable Direct Fixed Costs

Gross Profit

Contribution Margin

Selling and Administrative

Variable Costs

Sales

Gross Profit

Cost of Goods Sold

Total Variable Costs

Selling and Administrative

Variable Costs

Controllable Margin

Controllable Direct Fixed Costs

Contribution Margin

Total Controllable Direct Fixed Costs

Favorable

Unfavorable

Neither Favorable nor Unfavorable

Controllable Margin

Total Controllable Direct Fixed Costs

Cost of Goods Sold

Variable Costs

Total Variable Costs

Sales

Contribution Margin

Selling and Administrative

Controllable Direct Fixed Costs

Gross Profit

Favorable

Unfavorable

Neither Favorable nor Unfavorable

Contribution Margin

Total Controllable Direct Fixed Costs

Gross Profit

Variable Costs

Controllable Direct Fixed Costs

Controllable Margin

Total Variable Costs

Selling and Administrative

Cost of Goods Sold

Sales

Favorable

Unfavorable

Neither Favorable nor Unfavorable

Contribution Margin

Total Variable Costs

Gross Profit

Controllable Margin

Controllable Direct Fixed Costs

Sales

Variable Costs

Selling and Administrative

Total Controllable Direct Fixed Costs

Cost of Goods Sold

Favorable

Unfavorable

Neither Favorable nor Unfavorable

Gross Profit

Selling and Administrative

Total Controllable Direct Fixed Costs

Sales

Controllable Direct Fixed Costs

Cost of Goods Sold

Variable Costs

Total Variable Costs

Controllable Margin

Contribution Margin

Contribution Margin

Total Variable Costs

Controllable Margin

Total Controllable Direct Fixed Costs

Sales

Gross Profit

Variable Costs

Controllable Direct Fixed Costs

Cost of Goods Sold

Selling and Administrative

Favorable

Unfavorable

Neither Favorable nor Unfavorable

Selling and Administrative

Cost of Goods Sold

Controllable Direct Fixed Costs

Total Variable Costs

Total Controllable Direct Fixed Costs

Variable Costs

Contribution Margin

Controllable Margin

Gross Profit

Sales

Favorable

Unfavorable

Neither Favorable nor Unfavorable

Gross Profit

Total Controllable Direct Fixed Costs

Cost of Goods Sold

Controllable Direct Fixed Costs

Selling and Administrative

Total Variable Costs

Sales

Variable Costs

Contribution Margin

Controllable Margin

Favorable

Unfavorable

Neither Favorable nor Unfavorable

Gross Profit

Selling and Administrative

Total Controllable Direct Fixed Costs

Cost of Goods Sold

Contribution Margin

Controllable Direct Fixed Costs

Variable Costs

Sales

Total Variable Costs

Controllable Margin

$$$

Favorable

Unfavorable

Neither Favorable nor Unfavorable

ROI%%