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 July 31 is as follows: Line Item Description Customer service salaries Insurance and property taxes Distribution salaries Marketing salaries Engineer salaries Warehouse wages Equipment depreciation 1,025,130 836,850 586,110 185,120 Total $4,167,050 During July, the costs incurred in the Consumer Products Division were as follows: Line Item Description Customer service salaries Insurance and property taxes Distribution salaries Marketing salaries Engineer salaries Warehouse wages Equipment depreciation Total Required: Question Content Area Amount $546,840 114,660 872,340 Line Item Description Customer service salaries Amount $642,800 110,240 861,200 1,085,230 815,012 562,632 183,610 $4,260,724 1. Prepare a budget performance report for the director of the Consumer Products Division for the month of July. If an amount box does not require an entry, leave it blank. Actual Budget Over Budget Under Budget Insurance and property taxes Distribution salaries Marketing salaries Engineer salaries Warehouse wages Equipment depreciation Total Question Content Area 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 July 31 is as follows: Line Item Description Customer service salaries Insurance and property taxes Distribution salaries Marketing salaries Engineer salaries Warehouse wages Equipment depreciation 1,025,130 836,850 586,110 185,120 Total $4,167,050 During July, the costs incurred in the Consumer Products Division were as follows: Line Item Description Customer service salaries Insurance and property taxes Distribution salaries Marketing salaries Engineer salaries Warehouse wages Equipment depreciation Total Required: Question Content Area Amount $546,840 114,660 872,340 Line Item Description Customer service salaries Amount $642,800 110,240 861,200 1,085,230 815,012 562,632 183,610 $4,260,724 1. Prepare a budget performance report for the director of the Consumer Products Division for the month of July. If an amount box does not require an entry, leave it blank. Actual Budget Over Budget Under Budget Insurance and property taxes Distribution salaries Marketing salaries Engineer salaries Warehouse wages Equipment depreciation Total Question Content Area 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
Transcribed Image Text: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 July 31 is as follows:
Line Item Description
Customer service salaries
Insurance and property taxes
Distribution salaries
Marketing salaries
Engineer salaries
836,850
586,110
185,120
Total
$4,167,050
During July, the costs incurred in the Consumer Products Division were as follows:
Warehouse wages
Equipment depreciation
Line Item Description
Customer service salaries
Insurance and property taxes
Distribution salaries
Marketing salaries
Engineer salaries
Warehouse wages
Equipment depreciation
Total
Required:
Question Content Area
Line Item Description
Customer service salaries
Insurance and property taxes
Distribution salaries
Amount
$546,840
114,660
872,340
1,025,130
1. Prepare a budget performance report for the director of the Consumer Products Division for the month
of July. If an amount box does not require an entry, leave it blank.
Actual Budget Over Budget Under Budget
Marketing salaries
Engineer salaries
Warehouse wages
Equipment depreciation
Amount
$642,800
110,240
861,200
1,085,230
815,012
562,632
183,610
$4,260,724
Total
Question Content Area
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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