Budget performance report for a cost center Sneed Industries Company sells aftermarket vehicle parts to automotive companies. The crane division is organized as a cost center. The budget of the crane division for the month ended August 31, 20Y6, is as follows (in thousands): During the month of August, the costs incurred in the crane division were as follows: Instructions: 1. Prepare a budget performance report for the director of the crane division for the month of August. 2. For what costs, according to the report, might the director require additional or supplementary information? (For which costs might the director be expected to request supplemental reports?) Profit center responsibility reporting A-One Freight Inc. has three regional divisions organized as profit centers. The chief executive officer (CEO) evaluates the division's performance, using income from operations as a percentage of revenue. The following quarterly income and expenses were obtained from the "trial balance" of the company accordine to the balance shepts as of Decemher 3190V. The company operates three service departments: shareholder relations, customer support, and the legal services department. The shareholder relations department performs a variety of services for the company's shareholders. The customer service department (customer support) is the company's contact point for new services, complaints and requests. The number of customer contacts is identified as the activity base for this analysis. The legal department provides legal services to management and the number of hours billed is estimated to be an activity base for this analysis. The following additional information has been collected: Instructions: 1. Prepare quarterly income and expense statements, showing income from operations for the three divisions. 2. Identify which of the three divisions had the best performance according to profit margin. Round the result to two decimal places (identify the most successful division according to the profit margin. Round to two decimal places). 3. Provide a recommendation to the CEO of the company on a better method to evaluate the performance of the different divisions. On his recommendation, identify the main weaknesses of the currently used method (provide a recommendation to the CEO for a better method for evaluating the performance of the divisions. In your recommendation, identify the major weakness of the present method). Instructions Answers are entered in the cells with gray backgrounds. Cells with non-gray backgrounds are protected and cannot be edited. A red asterisk (") will appear in the row immediately to the right of an incorrect answer. For correct grading, enter a zero in cells you would otherwise leave blank. 1. SNEED INDUSTRIES COMPANY Budget Performance Report-Director, Crane Division For the Month Ended August 31, 20 Y 6 Customer service salaries Insurance and property taxes Distribution salaries Marketing salaries Engineer salaries Warehouse wages Equipment depreciation Total 2. Supporting schedules: Number of customer contacts Number of hours billed Customer contact rate Legal billing rate 2. 3. Summary of message to CEO