12,37 Cost center (LO2). The following table provides budgeted and actual cost information for Advent Cordless Phones: Budget Actual Production volume (units) 200,000 150,000 Total variable costs $9,200,000 $6,875,000 Total fixed costs 1,300,000 1,350,000 Required: a. Using a flexible budget, evaluate the performance of the Production Department during the budget year. b. An investigation reveals that a breakdown of a crucial piece of equipment during the year severely restricted output. It was determined that $75,000 of the fixed costs and $120,000 of the variable costs were attributable to this problem. How will your answer to part (a) change in light of this new information? ( "Imut rant norition I have met my profit target