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 Difference Over (Under) Budget 50 Actual $ 4,250 $ 1.210 70 500 Budgeted 4.2005 1.140 7.400 1,300 2,040 1.200 1,460 600 6.900 1.900 2.250 1,350 210 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 Totais 150 1,410 50) 680 940 260 1.830 1.790 40) 320 0 320 290 1,420 380 90 200 1.620 24,320 S S 23.280 S 1.040