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 Report$$Director$,$ 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