Torres Company accumulates the following summary data for the year ending December 31, 2017, for its Water Division, which it operates as a profit center: sales$2,067,800 budget, $2,290,000 actual; variable costs$1,014,600 budget, $1,041,900 actual; and controllable fixed costs$297,600 budget, $304,600 actual. Prepare a responsibility report for the Water Division.

Budget TORRES COMPANY Water Division Responsibility Report For the Year Ended December 31, 2017 Actual Difference Favorable Unfavorable Neither Favorable nor Unfavorable