# Budget performance reports for cost centers Partially completed budget performance reports for Garland Company, a manufacturer of light duty motors, follow: A. Complete the budget performance reports by determining the correct amounts for the lettered spaces. B. Compose a memo to Cassandra Reid, vice president of production for Garland Company, explaining the performance of the production division for November.

### Financial & Managerial Accounting

14th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781337119207

Chapter
Section

### Financial & Managerial Accounting

14th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781337119207
Chapter 23, Problem 23.1EX
Textbook Problem
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## Budget performance reports for cost centersPartially completed budget performance reports for Garland Company, a manufacturer of light duty motors, follow: A. Complete the budget performance reports by determining the correct amounts for the lettered spaces. B. Compose a memo to Cassandra Reid, vice president of production for Garland Company, explaining the performance of the production division for November.

A.

To determine

Budget: Budget is a report which compares, enumerates, and reports the difference between the actual costs and the estimated or planned costs. If the actual costs are more than the estimated costs, the difference is reported as over budget. If the actual costs are less than the estimated costs, the difference is reported as under budget.

To determine: The missing figures of budget performance reports of cost centers for Company G

### Explanation of Solution

(a), (b)

W Region has three departments: chip fabrication, electronic assembly, and final assembly. The chip fabrication department budgetary report gives the total actual cost as (a) $297,950, and budget cost as (b)$275,000.

(c)

Determine the over budget for chip fabrication department.

Over (under) budget = Actual costs–Budget costs= $297,950–$275,000= $22,950 (d), (e), (f) Determine the missing figures (d), (e), and (f).  Company G Budget Performance Report–Manager, W Region Plant For the Month Ended November 30 Department Actual Budget Over Budget Under Budget Chip Fabrication (a)$297,950 (b) $275,000 (c)$22,950 Electronic Assembly 703,200 700,000 3,200 Final Assembly 516,600 525,000 $(8,400) (d)$1,517,750 (e) $1,500,000 (f)$26,150 \$(8,400)

Table (1)

(g), (h)

Production Line of Company G has three regions: E Region Plant, C Region Plant, and W Region Plant

B.

To determine

To draft: A memo to CR, Vice President of Company G, explaining the performance of the production division

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