First Fast Pte Ltd operates the Home Appliance Division as a profit center. Operating data for this division for the year ended December 31, 2020, are shown below.

	Budget	Difference from Budget
	RM	RM
Sales	2,500,000	80,000 U
Cost of goods sold
Variable	1,100,000	68,000 U
Controllable fixed	300,000	9,000 F
Selling and administrative
Variable	230,000	7,000 F
Controllable fixed	60,000	3,000 U
Noncontrollable fixed costs	70,000	3,900 U

In addition, First Fast Pte Ltd incurs $160,000 of indirect fixed costs that were budgeted at $175,000.

Twenty percent (20%) of these costs are allocated to the Home Appliance Division. None of

these costs are controllable by the division manager.

Required:

(a) Prepare a responsibility report for the Home Appliance Division (a profit center) for f the year.

(b) Comment on the manager's performance in controlling revenues and costs.

(c) Identify any costs excluded from the responsibility report and explain why they were

excluded.

(25 marks)