Micawber, the production supervisor, bursts into your office, carrying the company’s 2009 performance report and thundering, quot;There is villainy…

Mr. Micawber, the production supervisor, bursts into your office, carrying the company’s 2009 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. Heep so down on my department? I thought we did a good job last year. But Heep claims my production people and I cost the company $31,500! plead with you, sir, explain this performance report to me.” Trying to calm Micawber, you take the report from him and ask to be left alone for 15 minutes. The report is as follows:Requireda. Evaluate the performance report. Is Mr. Heep 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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