Mr. Chan, the Fabricating Department Manager of Everyday Company prepared the following responsibility report for performance evaluation. He was happy with the good results as there was $44,737 cost saving from the budget amounts. Everyday Company Fabricating Department Responsibility Costs Report For the Month of January 2020 Budgeted production in units Variable costs Direct materials Direct labor Indirect materials Indirect labor Utilities Maintenance Fixed costs Salaries Depreciation Property taxes Insurance Janitorial Total costs Required: Static Actual 176,250 150,000 Budgeted Actual $264,375 $270,000 881,250 825,000 10,575 10,650 17,625 17,738 17,625 16,050 10,575 8,850 63,000 72,000 25,200 25,200 3,750 3,750 1,800 1,800 1,950 1,950 $1,297,725 $1,252,988 (a) Prepare a correct responsibility report for fabricating department in January, assuming all variable costs, 40% of salaries and 60% of janitorial costs are controllable by the department manager. Do you agree with Mr. Chan's self-performance evaluation? (12 marks) (b) Suggest the opportunities that the fabricating department (a cost center within the production department) should explore for improving their performance. (5 marks)