Variance Analysis

After reviewing the case, address the following questions:RequiredEvaluate the perfom1ance report. Is Mr. Richards correct, or is there “villainy here”?Assume that the sales department is a profit center and that the production and administration departments are cost center. 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.