The budget for Department 6 of Cardinal Company for the current month ending March 31 is as follows: Materials Factory wages Supervisory salaries Depreciation of plant and equipment Power and light Insurance and property taxes Maintenance $208,000 265,000 67,800 During March, the costs incurred in Department 6 of Cardinal Company 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; and maintenance, $9,456. a. Prepare a budget performance report for the supervisor of Department 6 of Cardinal Company for the month of March. If an amount box does not require an entry, leave it blank. Use the minus sign to indicate under budget answers. Budget Performance Report Materials Factory wages Supervisory salaries Depreciation of plant and equipment Power and light Insurance and property taxes Maintenance 35,000 22,500 15,500 9,700 Supervisor, Department 6-Cardinal Company For the Month Ended March 31 (Under) Over Actual Budget Budget Budget 208.000 204.000 265,000 285.000 67,800 63.300 35.000 35,000 22.500 15.500 9,700 21.360 14.400 9,456 20.000 ▬▬▬▬▬ $20.000 000000 4.000 4.500 1.140 1.100 244 b. Are there any significant variances (5% or greater) of the budgeted amounts that should be examined by the supervisor?
The budget for Department 6 of Cardinal Company for the current month ending March 31 is as follows: Materials Factory wages Supervisory salaries Depreciation of plant and equipment Power and light Insurance and property taxes Maintenance $208,000 265,000 67,800 During March, the costs incurred in Department 6 of Cardinal Company 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; and maintenance, $9,456. a. Prepare a budget performance report for the supervisor of Department 6 of Cardinal Company for the month of March. If an amount box does not require an entry, leave it blank. Use the minus sign to indicate under budget answers. Budget Performance Report Materials Factory wages Supervisory salaries Depreciation of plant and equipment Power and light Insurance and property taxes Maintenance 35,000 22,500 15,500 9,700 Supervisor, Department 6-Cardinal Company For the Month Ended March 31 (Under) Over Actual Budget Budget Budget 208.000 204.000 265,000 285.000 67,800 63.300 35.000 35,000 22.500 15.500 9,700 21.360 14.400 9,456 20.000 ▬▬▬▬▬ $20.000 000000 4.000 4.500 1.140 1.100 244 b. Are there any significant variances (5% or greater) of the budgeted amounts that should be examined by the supervisor?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
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Transcribed Image Text:The budget for Department 6 of Cardinal Company for the current month ending March 31 is as follows:
Materials
Factory wages
Supervisory salaries
Depreciation of plant and equipment
Power and light
Insurance and property taxes
Maintenance
$208,000
265,000
67,800
35,000
22,500
15,500
9,700
During March, the costs incurred in Department 6 of Cardinal Company 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; and maintenance, $9,456.
a. Prepare a budget performance report for the supervisor of Department 6 of Cardinal Company for the month of March. If an amount box does not require an entry, leave it blank. Use the minus sign to indicate under budget answers.
Budget Performance Report
Supervisor, Department 6-Cardinal Company
For the Month Ended March 31
Actual Budget
208,000 $ 204,000
265,000
285,000
67,800
63,300
35,000
35,000
22,500
21,360
15,500
14,400
9,700
9,456
Materials
Factory wages
Supervisory salaries
Depreciation of plant and equipment
Power and light
Insurance and property taxes
Maintenance
$
(Under)
Budget
Over
Budget
4,000
20,000 $
20,000
4,500
1,140
1.100
244
b. Are there any significant variances (5% or greater) of the budgeted amounts that should be examined by the supervisor?
Yes
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