Budget performance reports for cost centers

Partially completed budget performance reports for Runquist Company, a manufacturer of air conditioners, are provided below.

a.Complete the budget performance reports by determining the correct amounts for the lettered spaces.
b.Compose a memo to Jeff Kitchens, president of Meridian Company, explaining the performance of the Production Division for June.

(a)

Concept Introduction:

Financial budget generally made by the company's accounting and finance department. A performance report is a specific document of the company's overall budget management system. This list contains specific attributes relating to many variances of the budget with other information which are needed to the budget situation.

Management can plan for future expenditures through budget statement and also may adjust future expenditures based on past budget performance. Sometimes, past performance budget helps the management to understand how and why they are spending money in their business for expansion of business and increasing the profit.

To find out:

A missing amount in budget statement of Company R for the month ended April 30.

Firstly, we will be taking the figure of Supervisor, condenser assembly's budget performance report for filling the missing amount in the Oxford plant. And after that, using the figure of the Oxford plant in the overall budget statement for complete the statement.

RUNQUIST COMPANY

Budget performance Report − Plant Manager, Oxford Plant

For the month ended April, 30

Department	Budget   ($)	Actual   ($)	Over Budget   ($)	Under-Budget   ($)
Condenser Assembly	275,000	297,950	22,950	-
Electronic Assembly	700,000	703,200	3,200	-
Final Assembly	525,000	516,600	-	(8,400)
TOTAL	1,500,000	1,517,750	26,150	(8,400)

(b)

Concept Introduction:

Financial budget generally made by the company's accounting and finance department. A performance report is a specific document of the company's overall budget management system. This list contains specific attributes relating to many variances of the budget with other information which are needed to the budget situation.

Management can plan for future expenditures through budget statement and also may adjust future expenditures based on past budget performance. Sometimes, past performance budget helps the management to understand how and why they are spending money in their business for expansion of business and increasing the profit.

To prepare:

A memo to Jeff Kitchens, President of Meridian Company for performance of the production division for June.