E24-18 The dental services. 7 separate invest is in charge o Services. Each mon The Dinkle and Frizell Dental Clinic provides both preventive and orthodontic services. The two owners, Reese Dinkle and Anita Frizell operate the clinic as two Prepare for an ir te investment centers: Preventive Services and Orthodontic Services. Each of them (LO 4) charge of one of the centers: Reese for Preventive Services and Anita for Orthodontic ices. Each month, they prepare an income statement for the two centers to evaluate ormance and make decisions about how to improve the operational efficiency and profitability of the clinic. Recently, they have been concerned about the profitability of the Preventive Services erations. For several months, it has been reporting a loss. The responsibility report for 1 the month of May 2017 is shown on page 1090. performance Budgetary Control and Responsibility Accounting Difference from Budget $ 40,000 $1,000 F 5,000 3,900 1,900 100 U 100 U 2,500 350 F -0- 500 110 U 13,800 40 F Service revenue Variable costs Filling materials Novocain Supplies Dental assistant wages Utilities Total variable costs Fixed costs Allocated portion of receptionist's salary Dentist salary Equipment depreciation Allocated portion of building depreciation Total fixed costs 0.0 Operating income (loss) boril oleh 3,000 9,800 6,000 200 U 400 U -0- 15,000 33,800 $ (7,600) 1,000 U 1,600 U $ 560 U ssets at the beginning onth. They have asked for In addition, the owners know that the investment in operating assets at the of the month was $82,400, and it was $77,600 at the end of the month. They ha vour assistance in evaluating their current performance reporting system Instructions I ldblo o dblom (a) Prepare a responsibility report for an investment center as illustrated in the (b) Write a memo to the owners discussing the deficiencies of their curre ning system. b griollolad baroqot maqnow to istrated in the chapter. encies of their current report