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 Required:  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 $ $ $ $  For which costs might the director be expected to request supplemental reports? Customer service salaries and marketing salaries as they are significantly over budget. Customer service salaries, warehouse wages and marketing salaries as they have significantly changed.

Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter24: Evaluating Decentralized Operations
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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

Required:

  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

$

$

$

$

 For which costs might the director be expected to request supplemental reports?

Customer service salaries and marketing salaries as they are significantly over budget.

Customer service salaries, warehouse wages and marketing salaries as they have significantly changed.

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