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, 2016, is as follows:

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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:

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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?

VALOTIC TECH INC.

Budget Performance ReportDirector, Consumer Products Division

For the Month Ended January 31, 2016

1		Budget	Actual	Over Budget	Under Budget
2	Customer service salaries
3	Insurance and property taxes
4	Distribution salaries
5	Marketing salaries
6	Engineer salaries
7	Warehouse wages
8	Equipment depreciation
9	Total

Solution

VALOTIC TECH INC.

Budget Performance ReportDirector, Consumer Products Division

For the Month Ended January 31, 2016

1		Budget	Actual	Over Budget	Under Budget
2	Customer service salaries
3	Insurance and property taxes
4	Distribution salaries
5	Marketing salaries
6	Engineer salaries
7	Warehouse wages
8	Equipment depreciation
9	Total