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.
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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. |
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Budget Performance Report—Director, Consumer Products Division |
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For the Month Ended January 31 |
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|
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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