The Southwest District of Pop Soft Drinks, Inc., is organized as a cost center. The budget for the Southwest District of Pop Soft Drinks, Inc., for the month ended May 31, 2008, is as follows:

Sales salaries ........... $406,725

System support salaries ...... 222,300

Customer relations salaries ..... 75,975

Accounting salaries ........ 48,975

Repair and service ........ 134,625

Depreciation of plant and equipment . 45,750

Insurance and property taxes ..... 20,475

Total ............. $954,825

During May, the costs incurred in the Southwest District were as follows:

Sales salaries .......... $406,200

System support salaries ...... 222,075

Customer relations salaries ...... 89,025

Accounting salaries ........ 48,675

Repair and service ........ 135,375

Depreciation of plant and equipment .. 45,750

Insurance and property taxes ..... 20,550

Total ............. $967,650

Instructions

1. Prepare a budget performance report for the manager of the Southwest District of Pop Soft Drinks for the month of May.

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