MA23-45. Evaluating a Companywide Performance Report LO8 Mr. Chandler, the production supervisst, bursts into your office, carrying the company's 2017 per- formance report and thundering."There is villainy here, sir! And I shall get lo the botom of it. I will mot slop searching unhave ound the answer! Why is Mr. Richards so down on my department? I thoughi we did a good job last year. But Richards claims my production people and I cost the company 31.500 1 plead with you, sir, explain this performance repon to me." Trying tocalm Chandler. you ake the report from him and ask to he left alone for 15 minules. The report is as follows: DICKENS COMPANY, LIMITED Performance Report For Year 2017 Actual Budget Variance Unit sales $202,500 225,000 $37, Less manufacturing costs Direct materias Direct lahor 55,500 32,500 32,000 8,000 u 15,500 U 8,000 U 40,000 Total 143,500 31.500 0,000 F Less selling and administrative expenses Selling (all fixed) Administrative (all foed).... 57,800 17,800 u 5,000 U Total ..S 6,200 23000 800 Performance summary Bud eted net income Sales department variances $23,000 Sales revenue Selling expenses. 37500 F 17,800 U $9,700 F 31,500 U 10,800 U S 0,200 Actual net income. includes fooed averhend of $22,000. Module 23 Standard Costs and Performance Reports Required b Assume that the Sales Department is a prolit cenler and that the Production and Administration Evaluate the performance repont. Is Mr. Richards correct, or is there "villainy here Departments are cost centers. Determine the responsihility of each for cost. revenue, and income variances, and prepare a report reconciling budgeted and actual nel income. Your report should ocus on the performance of each responsibility cenler