Budget Performance Report for a Cost Center Sneed Industries Company sells vehicle parts to manufacturers of heavy construction equipment. The Crane Division is organized as a cost center. The budget for the Crane Division for the month ended August 31, 20Y6, is as follows (in thousands): Customer service salaries $ 375,000 Insurance and property taxes 75,000 Distribution salaries 712,500 Marketing salaries 450,000 Engineer salaries 1,110,000 Warehouse wages 420,000 Equipment depreciation 232,500 Total $ 3,375,000 During August, the costs incurred in the Crane Division were as follows: Customer service salaries $ 515,200 Insurance and property taxes 68,740 Distribution salaries 657,300 Marketing salaries 519,400 Engineer salaries 1,033,550 Warehouse wages 384,860 Equipment depreciation 217,000 Total $ 3,396,050 Required: 1. Prepare a budget performance report for the director of the Crane Division for the month of August. Enter amounts in thousands (same format as the data above). If an amount box does not require an entry, leave it blank. Sneed Industries Company Budget Performance Report-Director, Crane Division For the Month Ended August 31, 20Y6 Budget Actual Over Budget (Under) Budget Customer service salaries $ $ $ $ Insurance and property taxes Distribution salaries Marketing salaries Engineer salaries Warehouse wages Equipment depreciation Total $ $ $ $ 2. Given the data, all of the following could explain the over-budget areas except:
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.
Budget Performance Report for a Cost Center
Sneed Industries Company sells vehicle parts to manufacturers of heavy construction equipment. The Crane Division is organized as a cost center. The budget for the Crane Division for the month ended August 31, 20Y6, is as follows (in thousands):
| Customer service salaries | $ 375,000 |
| Insurance and property taxes | 75,000 |
| Distribution salaries | 712,500 |
| Marketing salaries | 450,000 |
| Engineer salaries | 1,110,000 |
| Warehouse wages | 420,000 |
| Equipment |
232,500 |
| Total | $ 3,375,000 |
During August, the costs incurred in the Crane Division were as follows:
| Customer service salaries | $ 515,200 |
| Insurance and property taxes | 68,740 |
| Distribution salaries | 657,300 |
| Marketing salaries | 519,400 |
| Engineer salaries | 1,033,550 |
| Warehouse wages | 384,860 |
| Equipment depreciation | 217,000 |
| Total | $ 3,396,050 |
Required:
1. Prepare a budget performance report for the director of the Crane Division for the month of August. Enter amounts in thousands (same format as the data above).
If an amount box does not require an entry, leave it blank.
| Sneed Industries Company | ||||
| Budget Performance Report-Director, Crane Division | ||||
| For the Month Ended August 31, 20Y6 | ||||
| Budget | Actual | Over Budget | (Under) Budget | |
| Customer service salaries | $ | $ | $ | $ |
| Insurance and property taxes | ||||
| Distribution salaries | ||||
| Marketing salaries | ||||
| Engineer salaries | ||||
| Warehouse wages | ||||
| Equipment depreciation | ||||
| Total | $ | $ | $ | $ |
2. Given the data, all of the following could explain the over-budget areas except:
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