Question

Budget performance report for a cost center GHT Tech Inc. sells electronics over the Internet. The Consumer Products Division is organized as a cost center. The budget for the Consumer Products Division for the month ended January 31 is as follows: Customer service salaries $546,840 Insurance and property taxes 114,660 Distribution salaries 872,340 Marketing salaries 1,028,370 Engineer salaries 836,850 Warehouse wages 586,110 Equipment depreciation 183,792 Total $4,168,962 During January, the costs incurred in the Consumer Products Division were as follows: Customer service salaries $602,350 Insurance and property taxes 110,240 Distribution salaries 861,200 Marketing salaries 1,085,230 Engineer salaries 820,008 Warehouse wages 562,632 Equipment depreciation 183,610 Total $4,225,270

1. Prepare a budget performance report for the director of the Consumer Products Division for the month of January. If an amount box does not require an entry, leave it blank GHT Tech Inc. Budget Performance Report-Director, Consumer Products Division For the Month Ended January 31 Actual Budget Over Budget Under Budget Customer service salaries $ Insurance and property taxes Distribution salaries Marketing salaries Engineer salaries Warehouse wages Equipment depreciation Total
2. For which costs might the director be expected to request supplemental reports?
1. Customer service salaries and marketing salaries as they are significantly over budget.
2. Customer service salaries, warehouse wages and marketing salaries as they have significantly changed.
3. Engineering salaries and warehouse wages as they are significantly under budget.

Answer 1

A.Actual $4,225,270

Budget $ 4,168,962

Over budget $112,370

Under budget $56,062

B. The director be expected to request supplemental request for Customer service salaries, warehouse wages and marketing salaries as they have significantly changed.

Step-by-step explanation:

Preparation of the budget performance report for the director of the Consumer Products Division for the month of January.

GHT Tech Inc.

Budget Performance Report for Director, Consumer Products Division For the month ended January 31

Actual Budget Over budget Under budget

Customer Service Salaries $ 602,350 $ 546,840 $ 55,510 Over budget

Insurance and Property Taxes

110,240 114,660 $ 4,420 Under budget

Distribution Salaries 861,200 872,340 11,140 Under budget

Marketing Salaries 1,085,230 1,028,370 56,860 Over budget

Engineer Salaries 820,008 836,850 16,842 Under budget

Warehouse Wages 562,632 586,110 23,478 Under budget

Equipment Depreciation 183,610 183,792 182 Under budget

Totals

Actual $4,225,270

Budget $ 4,168,962

Over budget $112,370

Under budget $56,062

2. The director be expected to request supplemental reports for Customer service salaries, warehouse wages and marketing salaries as they have significantly changed.