Question

1. Budget Performance Reports for A decentralized unit in which the department or division manager has responsibility for the control of costs incurred and the authority to make decisions that affect these costs.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	$483,500		$483,500				$0
   Central Region	348,100		344,600				(3,500)
   Western Region	(g)		(h)		(i)
   	$(j)		$(k)		$(l)		$(3,500)

   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	90,190		91,360		1,170
   Final Assembly	143,400		142,250				$(1,150)
   	$(d)		$(e)		$(f)		$(1,150)

   Garland Company Budget Performance Report—Supervisor, Chip Fabrication For the Month Ended November 30
   Cost	Budget		Actual		Over Budget		Under Budget
   Factory wages	$23,070		$24,680		$1,610
   Materials	62,400		61,960				$(440)
   Power and light	3,870		4,610		740
   Maintenance	6,240		6,830		590
   	$95,580		$98,080		$2,940		$(440)

   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 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

   • Eastern Region
   • Central Region
   • Western Region
   plant has experienced a budget overrun. Its budget reveals that the
   • Chip Fabrication
   • Electronic Assembly
   • Final Assembly
   Department caused the majority of the budget overrun. The supervisor of the
   • Chip Fabrication
   • Electronic Assembly
   • Final Assembly
   Department should investigate the reasons for the budget overruns in
   • factory wages, materials, and maintenance
   • materials, power and light, and maintenance
   • factory wages, power and light, and maintenance
   .

Answer 1