Need two page summary of the case, i also have attached the solutions for the case. please help ASAP with introduction and a brief conclusion of the case.Need it ASAP

 

Comprehensive Performance Report

Laptop Computing is a contract manufacturer of laptop computers sold under brand named com-

panies. Presented are Laptopâs budgeted and actual contribution income statements for October.

The company has three responsibility centers: Production, Selling and Distribution, and Admin-

istration. Production and Administration are cost centers while Selling and Distribution is a profit

center.

 

LAPTOP COMPUTING

Budgeted Contribution Income Statement

For Month of October

Sales (900 3 $250) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $225,000

Less variable costs

Variable cost of goods sold

 Direct materials (900 3 $50)  . . . . . . . . . . . . . . . . . . . . . . . $45,000

 Direct labor (900 3 $20). . . . . . . . . . . . . . . . . . . . . . . . . . . 18,000

 Manufacturing overhead (900 3 $15)  . . . . . . . . . . . . . . . . 13,500

$ 76,500

Selling and Distribution (900 3 $60). . . . . . . . . . . . . . . . . . . 54,000

(130,500)

Contribution margin94,500

Less fixed costs

Manufacturing overhead . . . . . . . . . . . . . . . . . . . . . . . . . . . .  40,000

Selling and Distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000

Administrative  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,500

(80,500)

Net income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 14,000

 

LAPTOP COMPUTING

Actual Contribution Income Statement

For Month of October

Sales (1,000 3 $275) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$275,000

Less variable costs

Cost of goods sold

Direct materials  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$50,000

Direct labor. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25,000

Manufacturing overhead  . . . . . . . . . . . . . . . . . . . . . . . . . .20,000

$95,000

Selling and Distribution. . . . . . . . . . . . . . . . . . . . . . . . . . . . .88,000

(183,000)

Contribution margin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .92,000

Less fixed costs

Manufacturing overhead . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38,000

Selling and Distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . .40,000

Administrative  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22,000

(100,000)

Net income (loss). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ (8,000)

 

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 cente

Attachments:

• 1513579205-Answer 16042016 performance report 1.xlsx