LO2, 3, 4, 5, 6, 7,8 D. Using the your analysis, prepare an alternative reconciliation of budgeted and actual profit. Be sure to include the occupancy variance. c. Explain why the total variances for sales, food, and labor in your reconciliation differ from those originally presented to the restaurant manager. P10-41. Comprehensive Performance Report Instant Computing is a contract manufacturer of laptop computers sold under brand named companies. Presented are Instant's budgeted and actual contribution income statements for October. The company has three responsibility centers: Production, Selling and Distribution, and Administration. Production and Administration are cost centers while Selling and Distribution is a profit center. INSTANT COMPUTING Budgeted Contribution Income Statement For Month of October Sales (1,800 X $250) $450,000 Less variable costs Variable cost of goods sold Direct materials (1,800 x $50) $90,000 Direct labor (1,800 x $20). 36,000 Manufacturing overhead (1,800 x $15) 27,000 $153,000 Selling and Distribution (1,800 x $60). 108,000 (261,000) Contribution margin 189,000 Less fixed costs Manufacturing overhead.. 80,000 Selling and Distribution. 60,000 Administrative. 21,000 (161,000) Net income. $ 28,000 Chapter 10 Standard Costs and Performance Reports 391 INSTANT COMPUTING Actual Contribution Income Statement For Month of October Sales (2,500 $275) $687,500 Less variable costs Cost of goods sold Direct materials $125,000 Direct labor. 57,500 Manufacturing overhead. 48,750 $231,250 Selling and Distribution.. 188,000 (419,250) Contribution margin 268,250 Less fixed costs Manufacturing overhead. 78,000 Selling and Distribution.. 75,000 Administrative.. 43,000 (196,000) Net income (loss) $ 72,250 Required a. Prepare a performance report for Production that compares actual and allowed costs. b. Prepare a performance report for Selling and Distribution that compares actual and allowed costs. c. Determine the sales price and the net sales volume variances, d. Prepare a report that summarizes the performance of Selling and Distribution. e. Determine the amount by which Administration was over or under budget. f. Prepare a report reconciling budgeted and actual net income. Your report should focus on the performance of each responsibility center