Problem 10-5A

Problem 10-5A 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, 2017, and relevant budget data are as follows. Actual Comparison with Budget Sales $1,400,000 $101,000 favorable variable cost of goods sold 674,000 56,000 unfavorable Variable selling and administrative expenses 124,000 25,000 unfavorable Controllable fixed cost of goods sold 171,000 on target Controllable fixed selling and administrative expenses 81,000 on target Average operating assets for the year for the Home Division were $1,999,000 which was also the budgeted amount. Prepare a responsibility report for the Home Division. (LIst varlable costs before fxed costs. Round ROI to 1 declmal place, e.g. 1.5.) OPTIMUS COMPANY Home Division Responsibliity Report For the Year Ended December 31, 2017 Difference Favorable Unfavorable Neither Favorable Budget Actual nor Unfavorable