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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
$100,000 favorable
Variable cost of goods sold
665,000
45,000 unfavorable
Variable selling and administrative expenses
125,000
25,000 unfavorable
Controllable fixed cost of goods sold
170,000
On target
Controllable fixed selling and administrative expenses
80,000
On target