Budget performance report for a cost center GHT 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 is as follows: Customer service salaries $546,840 Insurance and property taxes 114,660 Distribution salaries 872,340 Marketing salaries 1,028,370 Engineer salaries 836,850 Warehouse wages 586,110 Equipment depreciation 183,792 Total $4,168,962 During January, the costs incurred in the Consumer Products Division were as follows: Customer service salaries $602,350 Insurance and property taxes 110,240 Distribution salaries 861,200 Marketing salaries 1,085,230 Engineer salaries 820,008 Warehouse wages 562,632 Equipment depreciation 183,610 Total $4,225,270 Required: 1. Prepare a budget performance report for the director of the Consumer Products Division for the month of January. If an amount box does not require an entry, leave it blank. GHT Tech Inc. Budget Performance Report—Director, Consumer Products Division For the Month Ended January 31 Actual Budget Over Budget Under Budget Customer service salaries $fill in the blank 668c16032fb0fc1_1 $fill in the blank 668c16032fb0fc1_2 $fill in the blank 668c16032fb0fc1_3 $fill in the blank 668c16032fb0fc1_4 Insurance and property taxes fill in the blank 668c16032fb0fc1_5 fill in the blank 668c16032fb0fc1_6 fill in the blank 668c16032fb0fc1_7 fill in the blank 668c16032fb0fc1_8 Distribution salaries fill in the blank 668c16032fb0fc1_9 fill in the blank 668c16032fb0fc1_10 fill in the blank 668c16032fb0fc1_11 fill in the blank 668c16032fb0fc1_12 Marketing salaries fill in the blank 668c16032fb0fc1_13 fill in the blank 668c16032fb0fc1_14 fill in the blank 668c16032fb0fc1_15 fill in the blank 668c16032fb0fc1_16 Engineer salaries fill in the blank 668c16032fb0fc1_17 fill in the blank 668c16032fb0fc1_18 fill in the blank 668c16032fb0fc1_19 fill in the blank 668c16032fb0fc1_20 Warehouse wages fill in the blank 668c16032fb0fc1_21 fill in the blank 668c16032fb0fc1_22 fill in the blank 668c16032fb0fc1_23 fill in the blank 668c16032fb0fc1_24 Equipment depreciation fill in the blank 668c16032fb0fc1_25 fill in the blank 668c16032fb0fc1_26 fill in the blank 668c16032fb0fc1_27 fill in the blank 668c16032fb0fc1_28 Total $fill in the blank 668c16032fb0fc1_29 $fill in the blank 668c16032fb0fc1_30 $fill in the blank 668c16032fb0fc1_31 $fill in the blank 668c16032fb0fc1_32 2. For which costs might the director be expected to request supplemental reports? 1. Customer service salaries and marketing salaries as they are significantly over budget. 2. Customer service salaries, warehouse wages and marketing salaries as they have significantly changed. 3. Engineering salaries and warehouse wages as they are significantly under budget.

Budget performance report for a cost center GHT 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 is as follows: Customer service salaries $546,840 Insurance and property taxes 114,660 Distribution salaries 872,340 Marketing salaries 1,028,370 Engineer salaries 836,850 Warehouse wages 586,110 Equipment depreciation 183,792 Total $4,168,962 During January, the costs incurred in the Consumer Products Division were as follows: Customer service salaries $602,350 Insurance and property taxes 110,240 Distribution salaries 861,200 Marketing salaries 1,085,230 Engineer salaries 820,008 Warehouse wages 562,632 Equipment depreciation 183,610 Total $4,225,270 Required: 1. Prepare a budget performance report for the director of the Consumer Products Division for the month of January. If an amount box does not require an entry, leave it blank. GHT Tech Inc. Budget Performance Report—Director, Consumer Products Division For the Month Ended January 31 Actual Budget Over Budget Under Budget Customer service salaries $fill in the blank 668c16032fb0fc1_1 $fill in the blank 668c16032fb0fc1_2 $fill in the blank 668c16032fb0fc1_3 $fill in the blank 668c16032fb0fc1_4 Insurance and property taxes fill in the blank 668c16032fb0fc1_5 fill in the blank 668c16032fb0fc1_6 fill in the blank 668c16032fb0fc1_7 fill in the blank 668c16032fb0fc1_8 Distribution salaries fill in the blank 668c16032fb0fc1_9 fill in the blank 668c16032fb0fc1_10 fill in the blank 668c16032fb0fc1_11 fill in the blank 668c16032fb0fc1_12 Marketing salaries fill in the blank 668c16032fb0fc1_13 fill in the blank 668c16032fb0fc1_14 fill in the blank 668c16032fb0fc1_15 fill in the blank 668c16032fb0fc1_16 Engineer salaries fill in the blank 668c16032fb0fc1_17 fill in the blank 668c16032fb0fc1_18 fill in the blank 668c16032fb0fc1_19 fill in the blank 668c16032fb0fc1_20 Warehouse wages fill in the blank 668c16032fb0fc1_21 fill in the blank 668c16032fb0fc1_22 fill in the blank 668c16032fb0fc1_23 fill in the blank 668c16032fb0fc1_24 Equipment depreciation fill in the blank 668c16032fb0fc1_25 fill in the blank 668c16032fb0fc1_26 fill in the blank 668c16032fb0fc1_27 fill in the blank 668c16032fb0fc1_28 Total $fill in the blank 668c16032fb0fc1_29 $fill in the blank 668c16032fb0fc1_30 $fill in the blank 668c16032fb0fc1_31 $fill in the blank 668c16032fb0fc1_32 2. For which costs might the director be expected to request supplemental reports? 1. Customer service salaries and marketing salaries as they are significantly over budget. 2. Customer service salaries, warehouse wages and marketing salaries as they have significantly changed. 3. Engineering salaries and warehouse wages as they are significantly under budget.

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter24: Evaluating Decentralized Operations

Section: Chapter Questions

Problem 1PA: GHT Tech Inc. sells electronics over the Internet. The Consumer Products Division is organized as a...

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Budget performance report for a cost center

GHT 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 is as follows:

Customer service salaries	$546,840
Insurance and property taxes	114,660
Distribution salaries	872,340
Marketing salaries	1,028,370
Engineer salaries	836,850
Warehouse wages	586,110
Equipment depreciation	183,792
Total	$4,168,962

During January, the costs incurred in the Consumer Products Division were as follows:

Customer service salaries	$602,350
Insurance and property taxes	110,240
Distribution salaries	861,200
Marketing salaries	1,085,230
Engineer salaries	820,008
Warehouse wages	562,632
Equipment depreciation	183,610
Total	$4,225,270

Required:

1. Prepare a budget performance report for the director of the Consumer Products Division for the month of January. If an amount box does not require an entry, leave it blank.

GHT Tech Inc.
Budget Performance Report—Director, Consumer Products Division
For the Month Ended January 31
	Actual	Budget	Over Budget	Under Budget
Customer service salaries	$fill in the blank 668c16032fb0fc1_1	$fill in the blank 668c16032fb0fc1_2	$fill in the blank 668c16032fb0fc1_3	$fill in the blank 668c16032fb0fc1_4
Insurance and property taxes	fill in the blank 668c16032fb0fc1_5	fill in the blank 668c16032fb0fc1_6	fill in the blank 668c16032fb0fc1_7	fill in the blank 668c16032fb0fc1_8
Distribution salaries	fill in the blank 668c16032fb0fc1_9	fill in the blank 668c16032fb0fc1_10	fill in the blank 668c16032fb0fc1_11	fill in the blank 668c16032fb0fc1_12
Marketing salaries	fill in the blank 668c16032fb0fc1_13	fill in the blank 668c16032fb0fc1_14	fill in the blank 668c16032fb0fc1_15	fill in the blank 668c16032fb0fc1_16
Engineer salaries	fill in the blank 668c16032fb0fc1_17	fill in the blank 668c16032fb0fc1_18	fill in the blank 668c16032fb0fc1_19	fill in the blank 668c16032fb0fc1_20
Warehouse wages	fill in the blank 668c16032fb0fc1_21	fill in the blank 668c16032fb0fc1_22	fill in the blank 668c16032fb0fc1_23	fill in the blank 668c16032fb0fc1_24
Equipment depreciation	fill in the blank 668c16032fb0fc1_25	fill in the blank 668c16032fb0fc1_26	fill in the blank 668c16032fb0fc1_27	fill in the blank 668c16032fb0fc1_28
Total	$fill in the blank 668c16032fb0fc1_29	$fill in the blank 668c16032fb0fc1_30	$fill in the blank 668c16032fb0fc1_31	$fill in the blank 668c16032fb0fc1_32

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

1. Customer service salaries and marketing salaries as they are significantly over budget.

2. Customer service salaries, warehouse wages and marketing salaries as they have significantly changed.

3. Engineering salaries and warehouse wages as they are significantly under budget.

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