P24-4B Guzman Inc. operates the Home Appliance Division as a profit genter, Operating data for this division for the year ended December 31, 2017, are shown on the next page. Difference udgetfrom Budget $90,000 U Sales $2,400,000 Cost of goods sold Variable Controllable fixed Selling and administrative Variable Controllable fixed Noncontrollable fixed costs 1,200,000 200,000 58,000 U 8,000 F 240,000 60,000 50,000 8,000 F 3,000 U 2,000 U In addition, Guzman incurs $150,000 of indirect fixed costs that were budgeted at $155,000. Twenty percent 20% of these costs are allocated to the Home Appliance Division. None of these costs are controllable by the division manager. Instructions (a) Prepare a responsibility report for the Home Appliance Division (a profit center) for the year. ing revenues-and eests (c) Identify any costs excluded from the responsibility excluded. report and explain why they were PROBLEM 24-4B Responsibility Report For the Year Ended December 31, 2017 Budget 2,400,000 2,310,000 Favorable F Unfavorable U 90,000 U Actual Sales Variable Costs: Total Contribution Margin Controllable Fixed Costs