1. 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 ReportDirector, 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.

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