Torres Company accumulates the following summary data for the year ending December 31, 2020, for its Water Division, which it operates as a profit center: sales$1,944,000 budget, $2,244,800 actual; variable costs$1,001,200 budget, $1,055,400 actual; and controllable fixed costs$297,700 budget, $302,800 actual. Prepare a responsibility report for the Water Division for the year ending December 31, 2020.

TORRES COMPANY Water Division Responsibility Report For the Year Ended December 31, 2020 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Sales Favorable Variable Costs Unfavorable colod cotti X Contribution Margin Favorable Controllable Fixed Costs Unfavorable Controllable Margin Favorable