Budget Performance Reports for Cost Centers Partially completed budget performance reports for Garland Company, a manufacturer of light duty motors, follow: Garland Company Budget Performance Report—Vice President, Production For the Month Ended November 30 Plant Budget Actual Over Budget Under Budget Eastern Region $461,100 $461,100 $0 Central Region 332,000 328,700 (3,300) Western Region (g) (h) (i) $(j) $(k) $(l) $(3,300) Garland Company Budget Performance Report—Manager, Western Region Plant For the Month Ended November 30 Department Budget Actual Over Budget Under Budget Chip Fabrication $(a) $(b) $(c) Electronic Assembly 66,550 67,420 870 Final Assembly 106,480 105,630 $(850) $(d) $(e) $(f) $(850) Garland Company Budget Performance Report—Supervisor, Chip Fabrication For the Month Ended November 30 Cost Budget Actual Over Budget Under Budget Factory wages $29,360 $31,420 $2,060 Materials 71,560 71,060 $(500) Power and light 4,040 4,810 770 Maintenance 7,370 8,070 700 $112,330 $115,360 $3,530 $(500) a. Complete the budget performance reports by determining the correct amounts for the lettered spaces (a-l) as marked above. a. $fill in the blank 1 g. $fill in the blank 2 b. $fill in the blank 3 h. $fill in the blank 4 c. $fill in the blank 5 i. $fill in the blank 6 d. $fill in the blank 7 j. $fill in the blank 8 e. $fill in the blank 9 k. $fill in the blank 10 f. $fill in the blank 11 l. $fill in the blank 12 b. Complete the following memo to Cassandra Reid, vice president of production for Garland Company, explaining the performance of the production division for November. MEMO To: Cassandra Reid, Vice President of Production The Western Region plant has experienced a budget overrun. Its budget reveals that the Chip Fabrication Department caused the majority of the budget overrun. The supervisor of the Chip Fabrication Department should investigate the reasons for the budget overruns in factory wages, power and light, and maintenance .
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 Garland Company, a manufacturer of light duty motors, follow:
| Garland Company Budget Performance Report—Vice President, Production For the Month Ended November 30 |
||||||||
| Plant | Budget | Actual | Over Budget | Under Budget | ||||
| Eastern Region | $461,100 | $461,100 | $0 | |||||
| Central Region | 332,000 | 328,700 | (3,300) | |||||
| Western Region | (g) | (h) | (i) | |||||
| $(j) | $(k) | $(l) | $(3,300) |
| Garland Company Budget Performance Report—Manager, Western Region Plant For the Month Ended November 30 |
||||||||
| Department | Budget | Actual | Over Budget | Under Budget | ||||
| Chip Fabrication | $(a) | $(b) | $(c) | |||||
| Electronic Assembly | 66,550 | 67,420 | 870 | |||||
| Final Assembly | 106,480 | 105,630 | $(850) | |||||
| $(d) | $(e) | $(f) | $(850) |
| Garland Company Budget Performance Report—Supervisor, Chip Fabrication For the Month Ended November 30 |
||||||||
| Cost | Budget | Actual | Over Budget | Under Budget | ||||
| Factory wages | $29,360 | $31,420 | $2,060 | |||||
| Materials | 71,560 | 71,060 | $(500) | |||||
| Power and light | 4,040 | 4,810 | 770 | |||||
| Maintenance | 7,370 | 8,070 | 700 | |||||
| $112,330 | $115,360 | $3,530 | $(500) |
a. Complete the budget performance reports by determining the correct amounts for the lettered spaces (a-l) as marked above.
| a. $fill in the blank 1 | g. $fill in the blank 2 |
| b. $fill in the blank 3 | h. $fill in the blank 4 |
| c. $fill in the blank 5 | i. $fill in the blank 6 |
| d. $fill in the blank 7 | j. $fill in the blank 8 |
| e. $fill in the blank 9 | k. $fill in the blank 10 |
| f. $fill in the blank 11 | l. $fill in the blank 12 |
b. Complete the following memo to Cassandra Reid, vice president of production for Garland Company, explaining the performance of the production division for November.
MEMO
To: Cassandra Reid, Vice President of Production
The Western Region plant has experienced a budget overrun. Its budget reveals that the Chip Fabrication Department caused the majority of the budget overrun. The supervisor of the Chip Fabrication Department should investigate the reasons for the budget overruns in factory wages, power and light, and maintenance .
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