Question
Valotic Tech Inc. sells electronics over the Internet. The Consumer Products Division is organized as a cost center. The budget for the Consumer Products Division
Valotic 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 January 31 is as follows:
1 | Customer service salaries | $546,840.00 |
2 | Insurance and property taxes | 114,660.00 |
3 | Distribution salaries | 872,340.00 |
4 | Marketing salaries | 1,028,370.00 |
5 | Engineer salaries | 836,850.00 |
6 | Warehouse wages | 586,110.00 |
7 | Equipment depreciation | 183,792.00 |
8 | Total | $4,168,962.00 |
During January, the costs incurred in the Consumer Products Division were as follows:
1 | Customer service salaries | $602,350.00 |
2 | Insurance and property taxes | 110,240.00 |
3 | Distribution salaries | 861,200.00 |
4 | Marketing salaries | 1,085,230.00 |
5 | Engineer salaries | 820,008.00 |
6 | Warehouse wages | 562,632.00 |
7 | Equipment depreciation | 183,610.00 |
8 | Total | $4,225,270.00 |
Required: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1. | Prepare a budget performance report for the director of the Consumer Products Division for the month of January. Enter all amounts as positive numbers. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2. | For which costs might the director be expected to request supplemental reports?
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