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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.

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 July 31 is as follows:
Line Item Description Amount
Customer service salaries $546,840
Insurance and property taxes 114,660
Distribution salaries 872,340
Marketing salaries 1,025,130
Engineer salaries 836,850
Warehouse wages 586,110
Equipment depreciation 185,120
Total $4,167,050
During July, the costs incurred in the Consumer Products Division were as follows:
Line Item Description Amount
Customer service salaries $642,800
Insurance and property taxes 110,240
Distribution salaries 861,200
Marketing salaries 1,085,230
Engineer salaries 815,012
Warehouse wages 562,632
Equipment depreciation 183,610
Total $4,260,724
Required:
Question Content Area
1. Prepare a budget performance report for the director of the Consumer Products Division for the month of July. 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 July 31
Line Item Description Actual Budget Over Budget Under Budget
Customer service salaries $Customer service salaries
$Customer service salaries
$Customer service salaries
$Customer service salaries
Insurance and property taxes Insurance and property taxes
Insurance and property taxes
Insurance and property taxes
Insurance and property taxes
Distribution salaries Distribution salaries
Distribution salaries
Distribution salaries
Distribution salaries
Marketing salaries Marketing salaries
Marketing salaries
Marketing salaries
Marketing salaries
Engineer salaries Engineer salaries
Engineer salaries
Engineer salaries
Engineer salaries
Warehouse wages Warehouse wages
Warehouse wages
Warehouse wages
Warehouse wages
Equipment depreciation Equipment depreciation
Equipment depreciation
Equipment depreciation
Equipment depreciation
Total $Total
$Total
$Total
$Total
Question Content Area
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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