Budget Performance Report for a Cost Center

Sneed Industries Company sells vehicle parts to manufacturers of heavy construction equipment. The Crane Division is organized as a cost center. The budget for the Crane Division for the month ended August 31, 20Y6, is as follows (in thousands):

Customer service salaries	$ 375,000
Insurance and property taxes	75,000
Distribution salaries	712,500
Marketing salaries	450,000
Engineer salaries	1,110,000
Warehouse wages	420,000
Equipment depreciation	232,500
Total	$ 3,375,000

During August, the costs incurred in the Crane Division were as follows:

Customer service salaries	$ 533,600
Insurance and property taxes	71,195
Distribution salaries	680,775
Marketing salaries	537,950
Engineer salaries	1,070,463
Warehouse wages	398,605
Equipment depreciation	224,750
Total	$ 3,517,338

Required:

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1. Prepare a budget performance report for the director of the Crane Division for the month of August. Enter amounts in thousands (same format as the data above).

If an amount box does not require an entry, leave it blank.

Sneed Industries Company Budget Performance Report-Director, Crane Division For the Month Ended August 31, 20Y6

	Budget	Actual	Over Budget	(Under) Budget
Customer service salaries	$fill in the blank 47b8d1096fae047_1	$fill in the blank 47b8d1096fae047_2	$fill in the blank 47b8d1096fae047_3	$fill in the blank 47b8d1096fae047_4
Insurance and property taxes	fill in the blank 47b8d1096fae047_5	fill in the blank 47b8d1096fae047_6	fill in the blank 47b8d1096fae047_7	fill in the blank 47b8d1096fae047_8
Distribution salaries	fill in the blank 47b8d1096fae047_9	fill in the blank 47b8d1096fae047_10	fill in the blank 47b8d1096fae047_11	fill in the blank 47b8d1096fae047_12
Marketing salaries	fill in the blank 47b8d1096fae047_13	fill in the blank 47b8d1096fae047_14	fill in the blank 47b8d1096fae047_15	fill in the blank 47b8d1096fae047_16
Engineer salaries	fill in the blank 47b8d1096fae047_17	fill in the blank 47b8d1096fae047_18	fill in the blank 47b8d1096fae047_19	fill in the blank 47b8d1096fae047_20
Warehouse wages	fill in the blank 47b8d1096fae047_21	fill in the blank 47b8d1096fae047_22	fill in the blank 47b8d1096fae047_23	fill in the blank 47b8d1096fae047_24
Equipment depreciation	fill in the blank 47b8d1096fae047_25	fill in the blank 47b8d1096fae047_26	fill in the blank 47b8d1096fae047_27	fill in the blank 47b8d1096fae047_28
Total	$fill in the blank 47b8d1096fae047_29	$fill in the blank 47b8d1096fae047_30	$fill in the blank 47b8d1096fae047_31	$fill in the blank 47b8d1096fae047_32

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Calculate the difference between the budget and actual amounts, and determine whether the actual amount is over or under the budget amounts.

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2. Given the data, all of the following could explain the over-budget areas except: