MANAGERIAL ACCOUNTING HANDOUT PROBLEM 8 Score Name Section Problem (10 points). The supervisor of the Polishing Department for Longan Silver Corporation received the attached performance report for the month of July, 20X7. It was noted that eight of the twelve items were over budget and that the 4.5 percent excess of actual over budgeted cost needed to be corrected. REQUIRED: (1) (2) Using the concept of controllable costs, identify the costs that should not be in this performance report. Give reasons for your answers. In a properly structured accounting report, what should be the difference between the budgeted and actual costs for the month of July, 20X7? Show calculations. LONGAN SILVER CORPORATION PERFORMANCE REPORT, POLISHING DEPARTMENT FOR THE MONTH ENDED JULY 31, 20X7 Budgeted 4,200 $ Actual 4,250 $ Difference Over (Under) Budget 50 $ 1.140 1,210 70 7,400 6,900 ( 500) 1,300 1.900 600 2,040 2.250 210 1,200 1,350 150 Polishing Materials, Direct Polishing Materials, Indirect Wages of Polishing Employees Wages of Service Functions. Allocated Depreciation Expense, Polishing Machinery Depreciation Expense, Corporate, Allocated Electric Power, Direct, To Polishing Machines Electric Power, Corporate, Allocated Equipment Rental, Polishing Insurance Expense, Polishing Insurance Expense, Corporate, Allocated Accounting Department, Corporate, Allocated Totals 1,460 1.410 50) 680 940 260 1,830 1.790 ( 40) 320 320 0 290 380 90 1,420 1,620 200 $ 23,280 $ 24.320 $ 1,040