The budget for Department 5 of Plant M for the current month ending March 31 is as follows: Materials $206,000 Factory wages 265,000 Supervisory salaries 67,800 Depreciation of plant and equipment 35,000 Power and light 22,500 Insurance and property taxes 15,500 Maintenance 9,700 During March, the costs incurred in Department 5 of Plant M were materials, $204,000; factory wages, $285,000; supervisory salaries, $63,600; depreciation of plant and equipment, $35,000 taxes, $14,400; maintenance, $9,456. a. Prepare a budget performance report for the supervisor of Department 5 of Plant M for the month of March. Enter all amounts as positive values. Budget Performance Report Supervisor, Department 5--Plant M For Month Ended March 31, 20-- Budget Actual Over Budget Under Budget Materials Factory wages Supervisory salaries Depreciation of plant and equipment Power and light Insurance and property taxes Maintenance x x x
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.
![The budget for Department 5 of Plant M for the current month ending March 31 is as follows:
Materials
$206,000
Factory wages
265,000
Supervisory salaries
67,800
Depreciation of plant and equipment
35,000
Power and light
22,500
Insurance and property taxes
15,500
Maintenance
9,700
During March, the costs incurred in Department 5 of Plant M were materials, $204,000; factory wages, $285,000; supervisory salaries, $63,600; depreciation of plant and equipment, $35,000; power and light, $21,360; insurance and property
taxes, $14,400; maintenance, $9,456.
a. Prepare a budget performance report for the supervisor of Department 5 of Plant M for the month of March. Enter all amounts as positive values.
Budget Performance Report
Supervisor, Department 5--Plant M
For Month Ended March 31, 20--
Budget
Actual
Over Budget
Under Budget
Materials
X
Factory wages
X $
X
Supervisory salaries
Depreciation of plant and equipment
X
Power and light
Insurance and property taxes
X
Maintenance
X
$
X
X
b. Are there any significant variances (greater than 5%) of the budgeted amounts that should be examined by the supervisor?
Yes](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3205b6d9-dc29-4686-b9e0-7bd53cde3d6d%2Fd5a048ea-ccf2-4155-88d4-209b6889cc92%2F8899fp_processed.png&w=3840&q=75)
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