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.

Line Item Description	Actual	Budget	Over Budget	Under Budget
Customer service salaries	_____	_____	_______	________
Insurance and property taxes	______	_______	________	_________
Distribution salaries	_______	_______	________	_________
Marketing salaries	_______	_______	________	_________
Engineer salaries	_______	_______	________	_________
Warehouse wages	_______	______	________	________
Equipment depreciation	______	_______	________	________
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