Budget Performance Reports for Cost Centers Partially completed budget performance reports for Delmar Company, a manufacturer of light duty motors, follow: Delmar CompanyBudget Performance Report—Vice President, ProductionFor the Month Ended June 30 Plant Actual Budget Over Budget (Under) Budget Eastern Region $360,500 $360,500 $0 Central Region 257,000 259,600 (2,600) Western Region (g) (h) (i) $(j) $(k) $(l) $(2,600) Delmar CompanyBudget Performance Report—Manager, Western Region PlantFor the Month Ended June 30 Department Actual Budget Over Budget (Under) Budget Chip Fabrication $(a) $(b) $(c) Electronic Assembly 90,830 89,660 1,170 Final Assembly 143,200 144,350 $(1,150) $(d) $(e) $(f) $(1,150) Delmar CompanyBudget Performance Report—Supervisor, Chip FabricationFor the Month Ended June 30 Cost Actual Budget Over Budget (Under) Budget Factory wages $31,650 $29,580 $2,070 Materials 74,880 75,410 $(530) Power and light 4,830 4,060 770 Maintenance 8,280 7,560 720 $119,640 $116,610 $3,560 $(530) a. Complete the budget performance reports by determining the correct amounts for the lettered spaces (a-l) as marked above. a. $ g. $ b. $ h. $ c. $ i. $ d. $ j. $ e. $ k. $ f. $ l. $ b. Complete the following memo to Randi Wilkes, vice president of production for Delmar Company, explaining the performance of the production division for June. MEMOTo: Randi Wilkes, Vice President of Production The plant has experienced a budget overrun. Its budget reveals that the Department caused the majority of the budget overrun. The supervisor of the Department should investigate the reasons for the budget overruns in .
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 Reports for Cost Centers
Partially completed budget performance reports for Delmar Company, a manufacturer of light duty motors, follow:
| Delmar Company Budget Performance Report—Vice President, Production For the Month Ended June 30 |
||||||||
| Plant | Actual | Budget | Over Budget | (Under) Budget | ||||
| Eastern Region | $360,500 | $360,500 | $0 | |||||
| Central Region | 257,000 | 259,600 | (2,600) | |||||
| Western Region | (g) | (h) | (i) | |||||
| $(j) | $(k) | $(l) | $(2,600) |
| Delmar Company Budget Performance Report—Manager, Western Region Plant For the Month Ended June 30 |
||||||||
| Department | Actual | Budget | Over Budget | (Under) Budget | ||||
| Chip Fabrication | $(a) | $(b) | $(c) | |||||
| Electronic Assembly | 90,830 | 89,660 | 1,170 | |||||
| Final Assembly | 143,200 | 144,350 | $(1,150) | |||||
| $(d) | $(e) | $(f) | $(1,150) |
| Delmar Company Budget Performance Report—Supervisor, Chip Fabrication For the Month Ended June 30 |
||||||||
| Cost | Actual | Budget | Over Budget | (Under) Budget | ||||
| Factory wages | $31,650 | $29,580 | $2,070 | |||||
| Materials | 74,880 | 75,410 | $(530) | |||||
| Power and light | 4,830 | 4,060 | 770 | |||||
| Maintenance | 8,280 | 7,560 | 720 | |||||
| $119,640 | $116,610 | $3,560 | $(530) |
a. Complete the budget performance reports by determining the correct amounts for the lettered spaces (a-l) as marked above.
| a. $ | g. $ |
| b. $ | h. $ |
| c. $ | i. $ |
| d. $ | j. $ |
| e. $ | k. $ |
| f. $ | l. $ |
b. Complete the following memo to Randi Wilkes, vice president of production for Delmar Company, explaining the performance of the production division for June.
MEMO
To: Randi Wilkes, Vice President of Production
The plant has experienced a budget overrun. Its budget reveals that the Department caused the majority of the budget overrun. The supervisor of the Department should investigate the reasons for the budget overruns in .
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