The Eastern District of Adelson Inc. is organized as a cost center. The budget for the Eastern District of Adelson Inc. for the month ended December 31, 2016, is as follows:

Sales salaries .............................................. $ 819,840

System administration salaries ............................ 448,152

Customer service salaries ................................. 152,600

Billing salaries ................................................ 98,760

Maintenance ................................................ 271,104

Depreciation of plant and equipment ..................... 92,232

Insurance and property taxes .............................. 41,280

Total ...................................................... $1,923,968

During December, the costs incurred in the Eastern District were as follows:

Sales salaries ............................................. $ 818,880

System administration salaries ........................... 447,720

Customer service salaries ................................. 183,120

Billing salaries ............................................... 98,100

Maintenance ................................................ 273,000

Depreciation of plant and equipment ..................... 92,232

Insurance and property taxes ............................... 41,400

Total ...................................................... $1,954,452

Instructions

1. Prepare a budget performance report for the manager of the Eastern District of Adelson for the month of December.

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