KaiViti Inc. manufactures and sells household furniture in Vanuatu. It operates its Household Furniture Division as a profit center. The company's operating data for this division for the year ended December 31, 2018, are as shown below. Difference from Favourable/ Budget Budget Unfavourable $3,500,000 $50,000 Favourable Sales 1,300,000 200,000 38 000 3,000 Favourable Unfavourable Cost of goods sold Variable Controlled fixed Selling and administrative Variable Controlled fixed Non-controllable fixed costs 180,000 50,000 6,000 4,000 Unfavourable Unfavourable 70,000 4,000 Unfavourable In addition, KaiViti Inc. incurs $180,000 of indirect fixed costs that were budgeted at $175,000. Twenty percent (20%) of these costs are allocated to the Household Furniture Division. Required: 1. Prepare a responsibility report for the Household Furniture Division for the year. (15 marks) 2. Comment on the manager's performance in controlling revenues and costs. (5 marks) 3. Identify any costs excluded from the responsibility report and explain why they were excluded (5 marks) (Show all relevant working)