Instant Computing is a contract manufacturer of laptop computers sold under brand named companies. Presented are Instants 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.

a. Prepare a performance report for Production that compares actual and allowed costs.

b. Prepare a performance report for Selling and Distribution that compares actual and allowed costs.

c. Determine the sales price and the net sales volume variances.

d. Prepare a report that summarizes the performance of Selling and Distribution.

e. Determine the amount by which Administration was over or under budget.

f. Prepare a report reconciling budgeted and actual net income. Your report should focus on the performance of each responsibility center.

instant computing: Budgeting contribution income statement for month of October Sales (2,000 x $400) $ 800,000.00 Less variable cost Variable cost of goods sold direct materials (2,000 x $60) $ 120,000.00 Diect labor (2,000 x $40) $ 80,000.00 manufacturing overhead (2,000 x $20) $ 40,000.00 $ 240,000.00 selling and distribution (2,000 x $45) $ 90,000.00 $ (330,000.00) contribution margin $ 470,000.00 Less fixed cost manufacturing overhead $ 160,000.00 admin $ 125,000.00 selling and distribution $ 75,000.00 $ (360,000.00) net income $ 110,000.00 Instant Computing: Actual Contribution Income statement for month of October Sales (2,000 x $400) $ 866,250.00 Less variable cost Variable cost of goods sold direct materials (2,000 x $60) $ 139,500.00 Diect labor (2,000 $40) $ 85,500.00 manufacturing overhead (2,000 x $20) $ 43,875.00 $ 268,875.00 selling and distribution (2,000 x $45) $ 105,750.00 $ (374,625.00) contribution margin $ 491,625.00 Less fixed cost manufacturing overhead $ 168,000.00 admin $ 135,000.00 selling and distribution $ 74,600.00 $ (377,600.00) net income $ 114,025.00