The following table provides budgeted and actual cost information for Advent Cordless Phones:

Required:
a. Evaluate the performance of the Production Department during the budget year.
b. An investigation reveals a breakdown of a crucial piece of equipment during the year that restricted output considerably. It was determined that $75,000 of the fixed costs and $120,000 of the variable costs were attributable to this problem. How will your answer to part (a) change in light of this newinformation?

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Budget 200,000 Actual Production volume (units) Total variable costs Total fixed costs 150,000 $9,200,000 $6,875,000 1,300,000 $1,350,000