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Question: Mr. Chandler, the production supervisor, bursts into your office, carrying the company’s 2014 per…
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Question: Mr. Chandler, the production supervisor, bursts into your office, carrying the company's 2014 per...

Show transcribed image text Mr. Chandler, the production supervisor, bursts into your office, carrying the company's 2014 performance report and thundering, "There is villainy here, sir! And I shall get to the bottom of it. I will not stop searching until I have found the answer! Why is Mr. Richards so down on department? I thought we did a good job last year. But Richards claims my production people and I cost the company $31, 500! I plead with you, sir, explain this performance report to me." Trying to calm Chandler you take the report from him and ask left alone for 15 minutes. The report is as follows: Required a. Evaluate the performance report. Is Mr. Richards correct, or is there "villainy here"? b. Assume that the Sales Department is a profit center and that the Production and Administration Departments are cost centers. Determine the responsibility of each for cost, revenue, and income variances, and prepare a report reconciling budgeted and actual net income. Your report should focus on the performance of each responsibility center.

Mr. Chandler, the production supervisor, bursts into your office, carrying the company's 2014 performance report and thundering, "There is villainy here, sir! And I shall get to the bottom of it. I will not stop searching until I have found the answer! Why is Mr. Richards so down on department? I thought we did a good job last year. But Richards claims my production people and I cost the company $31, 500! I plead with you, sir, explain this performance report to me." Trying to calm Chandler you take the report from him and ask left alone for 15 minutes. The report is as follows: Required a. Evaluate the performance report. Is Mr. Richards correct, or is there "villainy here"? b. Assume that the Sales Department is a profit center and that the Production and Administration Departments are cost centers. Determine the responsibility of each for cost, revenue, and income variances, and prepare a report reconciling budgeted and actual net income. Your report should focus on the performance of each responsibility center.

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