Question
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 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 | $fill in the blank | $fill in the blank | $fill in the blank | $fill in the blank |
Insurance and property taxes | fill in the blank | fill in the blank | fill in the blank | fill in the blank |
Distribution salaries | fill in the blank | fill in the blank 8b508e06cf9804a_10 | fill in the blank 8b508e06cf9804a_11 | fill in the blank 8b508e06cf9804a_12 |
Marketing salaries | fill in the blank | fill in the blank | fill in the blank | fill in the blank |
Engineer salaries | fill in the blank | fill in the blank | fill in the blank | fill in the blank |
Warehouse wages | fill in the blank | fill in the blank | fill in the blank | fill in the blank |
Equipment depreciation | fill in the blank | fill in the blank | fill in the blank | fill in the blank |
Total | $fill in the blank | $fill in the blank | $fill in the blank | $fill in the blank |
What is the profit margin of each region? Round percentages to the nearest whole number.
Division | Profit Margin |
East Region | fill in the blank |
West Region | fill in the blank |
Central Region | fill in the blank |
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.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started