The Bramble and Frizell Dental Clinic provides both preventive and orthodontic dental services. The two owners, Reese Bramble and Anita Frizell, operate the clinic as two separate investment centers: Preventive Services and Orthodontic Services. Each of them is in charge of one of the centers: Reese for Preventive Services and Anita for Orthodontic Services. Each month, they prepare an income statement for the two centers to evaluate performance and make decisions about how to improve the operational efficiency and proftability of the clinic. Recently, they have been concerned about the profitability of the Preventive Services operations. For several months, it has been reporting a loss. The responsibility report for the month of May 2022 is shown here Actual Difference from Budget Service revenue $41,670 $1,160 Favorable Variable costs Filling materials 4.930 150 Unfavorable Novocain 3.930 70 Unfavorable Supplies 1,980 420 Favorable Dental assistant wages 2.420 -O- Neither Favorable nor Unfavorable 550 130 Unfavorable Utilities Total variable costs 13,810 70 Favorable Fixed costs Allocated portion of receptionist's salary 3.170 320 Unfavorable

current performance reporting system. Preventive Services Responsibility Report Difference Favorable F Unfavorable U Neither Favorable Budget Actual nor Unfavorable N $ $ $