Problem 22-5A (Part Level Submission) 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 $1,400,000 674,000 124,000 169,000 80,000 $101,000 favorable 54,000 unfavorable 25,000 unfavorable Variable cost of goods sold Variable selling and administrative expenses Controllable fixed cost of goods sold Controllable fixed selling and administrative expenses On target On target Average operating assets for the year for the Home Division were $2,001,000 which was also the budgeted amount. (a) Prepare a responsibility report for the Home Division. (List variable costs before fixed costs. Round ROI to 1 decimal place, e.g. 1.5.) OPTIMUS COMPANY Home Division Responsibility Report For the Year Ended December 31, 2017 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Sales 1299000 1400000 101000 Variable Costs Cost of Goods Sold Selling and Administrative Total Variable Costs Contribution Margin Controllable Direct Fixed Costs Cost of Goods Sold Selling and Administrative Total Controllable Direct Fixed Costs Controllable Margin $ ROI % % % Problem 22-5A (Part Level Submission) 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 $1,400,000 674,000 124,000 169,000 80,000 $101,000 favorable 54,000 unfavorable 25,000 unfavorable Variable cost of goods sold Variable selling and administrative expenses Controllable fixed cost of goods sold Controllable fixed selling and administrative expenses On target On target Average operating assets for the year for the Home Division were $2,001,000 which was also the budgeted amount. (a) Prepare a responsibility report for the Home Division. (List variable costs before fixed costs. Round ROI to 1 decimal place, e.g. 1.5.) OPTIMUS COMPANY Home Division Responsibility Report For the Year Ended December 31, 2017 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Sales 1299000 1400000 101000 Variable Costs Cost of Goods Sold Selling and Administrative Total Variable Costs Contribution Margin Controllable Direct Fixed Costs Cost of Goods Sold Selling and Administrative Total Controllable Direct Fixed Costs Controllable Margin $ ROI % % %
