Comprehensive Performance Report 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 profit center. Sales (1) INSTANT COMPUTING Budgeted Contribution Income Statement For Month October Less variable costs Variable cost of goods sold Direct materials (2) Direct labor (3) $264,000 $1,760,000 176,000 Manufacturing overhead (4) 88,000 528,000 Selling and Distribution (5) 198,000 726,000 Contribution margin 1,034,000 Less fixed costs Manufacturing overhead 352,000 Administrative 275,000 Selling and Distribution 165,000 Net income 792,000 $242,000 (1) 4,400 x $400 - $1,760,000 (2) 4,400 x $60-$264,000 (3) 4,400 x $40 = $176,000 (4) 4,400 x $20 = $88,000 (5) 4,400 x $45 = $198,000 Sales (6) INSTANT COMPUTING Actual Contribution Income Statement Less variable costs For Month of October Cost of goods sold Direct materials Direct labor Manufacturing overhead Selling and Distribution $1,905,750 $306,900 188,100 96,525 591,525 232,650 824,175 1,081,575 Manufacturing overhead 369,600 297,000 Contribution margin Less fixed costs Administrative Selling and Distribution Net income (loss) 164,120 830,720 $250,855