Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

A Textbook Of Cost And Management Accounting

Authors: Arora

10th Edition

9789325956209

More Books

Students also viewed these Accounting questions

Question

What do you think your problem does to you?

Answered: 1 week ago