Instant Computing is a contract manufacturer of laptop computers sold under brand named companies.

Presented are Instant’s budgeted and actual contribution income statements for October. The company has three responsibility centers: Production, Selling and Distribution, and Administration. Production and Administration are cost centers while Selling and Distribution is a profit center.

Required
Prepare a performance report for Production that compares actual and allowed costs.
Prepare a performance report for Selling and Distribution that compares actual and allowed costs.
Determine the sales price and the net sales volume variances.
. Prepare a report that summarizes the performance of Selling and Distribution.
Determine the amount by which Administration was over or under budget.
Prepare a report reconciling budgeted and actual net income. Your report should focus on the performance of each responsibility center.

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Sales (1,800 x $250). Less variable costs INSTANT COMPUTING Budgeted Contribution Income Statement For Month of October Variable cost of goods sold Direct materials (1,800 x $50) Direct labor (1,800 x $20). Manufacturing overhead (1,800 x $15) Selling and Distribution (1,800 x $60) Contribution margin.. Less fixed costs Manufacturing overhead. Selling and Distribution... Administrative Net income... $90,000 36,000 27,000 $153,000 $450,000 108,000 (261,000) 189.000 80.000 60.000 21.000 (161,000) $ 28,000