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 a profit center.

INSTANT COMPUTING Actual Contribution Income Statement For Month of October Sales (2,250 x $385) .............................. Less variable costs Cost of goods sold Direct materials ............................... $139,500 Direct labor .................................. 85,500 Manufacturing overhead ........................ 43,875 $268,875 Selling and Distribution ........................... 105,750 Contribution margin ............................... Less fixed costs Manulacturing overhead .......................... 168,000 Administrative .................................. 1 35,000 Selling and Distribution ........................... 74,600 Net income (loss) ................................. $866,250 (374,625) 491 ,625 (377,600) $1 14,025 INSTANT COMPUTING Budgeted Contribution Income Statement For Month of October Sales (2,000 x $400) . . ... . $800,000 Less variable costs Variable cost of goods sold Direct materials (2,000 x $60) . . . $120,000 Direct labor (2,000 x $40) . .. . . 80,000 Manufacturing overhead (2,000 x $20) . 40,000 $240,000 Selling and Distribution (2,000 x $45). . . 90,000 (330,000) Contribution margin . .. . . 470,000 Less fixed costs Manufacturing overhead . . . 160,000 Administrative . . .... 125,000 Selling and Distribution . . . 75,000 (360,000) Net income . . . . . $110,000