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		$1,399,000		$100,000	favorable
Variable cost of goods sold		670,000		55,000	unfavorable
Variable selling and administrative expenses		124,000		25,000	unfavorable
Controllable fixed cost of goods sold		170,000		On target
Controllable fixed selling and administrative expenses		83,000		On target

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

(a)

Prepare a 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 CostsVariable CostsTotal Controllable Direct Fixed CostsSelling and AdministrativeControllable MarginControllable Direct Fixed CostsGross ProfitContribution MarginSalesCost of Goods Sold		$			$			$		FavorableUnfavorableNeither Favorable nor Unfavorable
Total Controllable Direct Fixed CostsVariable CostsSelling and AdministrativeTotal Variable CostsControllable Direct Fixed CostsCost of Goods SoldSalesControllable MarginGross ProfitContribution Margin
Selling and AdministrativeControllable MarginSalesTotal Controllable Direct Fixed CostsTotal Variable CostsContribution MarginVariable CostsGross ProfitControllable Direct Fixed CostsCost of Goods Sold										FavorableUnfavorableNeither Favorable nor Unfavorable
Total Controllable Direct Fixed CostsSelling and AdministrativeCost of Goods SoldControllable Direct Fixed CostsGross ProfitControllable MarginTotal Variable CostsContribution MarginVariable CostsSales										FavorableUnfavorableNeither Favorable nor Unfavorable
Cost of Goods SoldSelling and AdministrativeContribution MarginTotal Controllable Direct Fixed CostsTotal Variable CostsSalesVariable CostsGross ProfitControllable Direct Fixed CostsControllable Margin										FavorableUnfavorableNeither Favorable nor Unfavorable
Controllable Direct Fixed CostsSalesTotal Controllable Direct Fixed CostsContribution MarginSelling and AdministrativeCost of Goods SoldControllable MarginTotal Variable CostsVariable CostsGross Profit										FavorableUnfavorableNeither Favorable nor Unfavorable
Total Controllable Direct Fixed CostsControllable Direct Fixed CostsCost of Goods SoldGross ProfitVariable CostsSelling and AdministrativeContribution MarginTotal Variable CostsSalesControllable Margin
Cost of Goods SoldControllable Direct Fixed CostsTotal Controllable Direct Fixed CostsControllable MarginContribution MarginTotal Variable CostsSelling and AdministrativeVariable CostsGross ProfitSales										FavorableUnfavorableNeither Favorable nor Unfavorable
Gross ProfitSelling and AdministrativeCost of Goods SoldVariable CostsContribution MarginSalesControllable MarginControllable Direct Fixed CostsTotal Controllable Direct Fixed CostsTotal Variable Costs										FavorableUnfavorableNeither Favorable nor Unfavorable
Total Controllable Direct Fixed CostsControllable MarginSelling and AdministrativeContribution MarginGross ProfitSalesTotal Variable CostsControllable Direct Fixed CostsCost of Goods SoldVariable Costs										FavorableUnfavorableNeither Favorable nor Unfavorable
Variable CostsContribution MarginSalesSelling and AdministrativeTotal Variable CostsTotal Controllable Direct Fixed CostsControllable Direct Fixed CostsControllable MarginCost of Goods SoldGross Profit		$			$			$		FavorableUnfavorableNeither Favorable nor Unfavorable
ROI			%			%			%	FavorableUnfavorableNeither Favorable nor Unfavorable