Raptor Company sells vehicle parts to manufacturers of heavy construction equipment. The Bulldozer Division is organized as a cost center. The budget for the Bulldozer Division for the month ended August 31, 20Y6, is as follows (in thousands):

Customer service salaries ..................$ 125,000
Insurance and property taxes ...............25,000
Distribution salaries ..............................237,500
Marketing salaries ................................150,000
Engineer salaries ..................................370,000
Warehouse wages ................................140,000
Equipment depreciation ........................77,500
Total ...................................................$1,125,000

During August, the costs incurred in the Bulldozer Division were as follows:

Customer service salaries .................$ 184,000

Insurance and property taxes ...............24,550

Distribution salaries .............................234,750

Marketing salaries ................................185,500

Engineer salaries ..................................369,125

Warehouse wages .................................137,450

Equipment depreciation .........................77,500

Total .....................................................$1,212,875

Instructions

1. Prepare a budget performance report for the director of the Bulldozer Division for the month of August.

2. For which costs might the director be expected to request supplemental reports?