make in excel format! When$$Christina$$Jacobs arrived at her office at Osiek$$Motors on$$June$3,$ she was pleased to find the monthly performance report on her desk.$$Christina$$s job as division controller was to analyze results of operations each month and to prepare a narrative report on monthly results which she would send to McCaddenEnterprises,$$Osiek$$s parent company. Osiek$$Motors$$was a$$wholly owned$$subsidiary of McCadden.$$The atmosphere at Osiek had been anxious throughout the month of$$May$.$ Today would provide the opportunity to find out how well Osiek$$s management had responded to the recent loss of a major customer contract.Osiek$$Motors$$manufactured small electric motors which were sold to household appliance manufacturers. What started as a small,$$family$-$owned$$business had grown to become a major player in the industry. It was at this point that McCadden$$came in with an offer that the Osiek family could not refuse. After the sale of Osiek closed, few changes had been made by McCaddenin either$$processes or staff, as they wanted to see how well the business functioned before making any changes.Three months after the sale,$$Christina$$Jacobs$,$ who had earned her B$.$S$.$ in Accounting transferred from McCadden$$s headquarters controller$$s office to Osiek Motors. She was joined soon after by Savannah Turner, also from McCadden, to be the new general manager$$at Osiek.Disaster struck soon after. A major appliance maker, and long$-$time Osiek customer, had cancelled their contract$$at the end of April$$and moved production to Southeast Asia.Because of the lost contract, and the potential negative financial impact,$$Christina$$had asked the plant chief accountant, Bart Christopher, to prepare the monthly performance report for$$Mayas soon as possible. She was amazed that the report had been prepared so quickly. Back at headquarters it had taken at least a week$$to receive the monthly reports. Even though Bart had promised that he could prepare the report in a single day with some overtime, she was surprised that he had done so$.$Osiek had prepared their$$planning$$budget for $202$x based on estimated sales$$and production expenses. Because sales were not seasonal, the monthly budget was simply $1/12$ of the annual$$planning$$budget$.$No adjustments had been made to the$$planning$$budget when the contract had been lost$$in April.A glance at the monthly performance report for May confirmed$$Christina$$s worst fears. Instead of the budgeted operating profit of $$91,200,$ Osiek had lost $$7,200$ in May. Even with the impact of the lost contract,$$Christina$$had expected a better result.$$The original performance report is shown in the Excel file that accompanies this case.The following is a reproduction of Bart$$s memo to$$Christina$$that was attached to the report:$06/02/202$x$11$:$30$pmTo:$$Christina JacobsFrom: Bart ChristopherSubject: May $202$x Monthly Performance ReportAs promised, here is the performance report for May. I$$m sure you will find the bottom line disappointing, but plant performance is$$excellent$!$Note that the plant is favorable against budget for every cost category except supervision, and supervision is higher only because the other costs were controlled!Because I worked late, I$$m taking tomorrow off. I have a $9$:$00$am tee time, so I will not be available for any phone calls or questions.Here is the additional data you requested:$1.$Budgeted costs per unit are $$6$ for Direct Material and $$16$ for Direct Labor, $$4\mathrm{.}89$ for Other Variable$$Mfg$.$Costs and $$1\mathrm{.}60$ for Variable Shipping costs.$2.$Actual selling price per unit is $$49$ versus$$planning$$budget of $$48.$