World-Tec Company sells electronics over the internet. The international division is organized as a cost center. The budget for the international Division for the month ended March 31, 2012, is as follow (in thousands):

Customer service salaries .......... $ 325,000

Insurance and property taxes ............ 68,250

Distribution salaries ............. 519,250

Marketing salaries ............... 612,125

Engineer salaries .............. 498,125

Warehouse wages ............... 348,800

Equipment depreciation ........... 109,400

Total .................. $2,481,450

During the March, the costs incurred in the International Division were as follows:

Customer service salaries .......... $ 416,700

Insurance and property taxes ............ 66,200

Distribution salaries ............. 514,000

Marketing salaries ............... 685,500

Engineer salaries .............. 488,100

Warehouse wages ............... 334,900

Equipment depreciation ........... 109,375

Total .................. $2,614,775

Instruction

1. Prepare a budget performance report for the director of the international division for the month of March

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