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 Static Actual Budgeted production in units 176 250 150 000 Budgeted Actual Variable costs Direct materials 8 264,375 $ 270,000 Direct labor 881,250 825,000 Indirect materials 10,575 10,650 Indirect labor 17,625 17,738 Utilities 17,625 16,050 Maintenance 10,575 8,850 Fixed costs Salaries 63,000 72,000 De reciation 25,200 25,200 Pro - ert taxes Insurance 1,800 1,800 Janitorial rm ml Total costs $1,297,725 $1,252,988 Required: (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) (Total: 17 marks)