Question

Valotic Tech Inc. sells electronics over the Internet. The Consumer Products Division is organized as a cost center. The budget for the Consumer Products Division for the month ended January 31 is as follows (in thousands):

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1	Customer service salaries	$546,840.00
2	Insurance and property taxes	114,660.00
3	Distribution salaries	872,340.00
4	Marketing salaries	1,028,370.00
5	Engineer salaries	836,850.00
6	Warehouse wages	586,110.00
7	Equipment depreciation	183,792.00
8	Total	$4,168,962.00

During January, the costs incurred in the Consumer Products Division were as follows:

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1	Customer service salaries	$602,350.00
2	Insurance and property taxes	110,240.00
3	Distribution salaries	861,200.00
4	Marketing salaries	1,085,230.00
5	Engineer salaries	820,008.00
6	Warehouse wages	562,632.00
7	Equipment depreciation	183,610.00
8	Total	$4,225,270.00

	Required:
1.	Prepare a budget performance report for the director of the Consumer Products Division for the month of January. For those boxes in which you must enter subtractive or negative numbers use a minus sign.
2.	For which costs might the director be expected to request supplemental reports? 1. Prepare a budget performance report for the director of the Consumer Products Division for the month of January. For those boxes in which you must enter subtractive or negative numbers use a minus sign. Question not attempted. Valotic Tech Inc. Budget Performance Report—Director, Consumer Products Division For the Month Ended January 31 (in thousands) 1 Actual Budget Over Budget Under Budget 2 Customer service salaries 3 Insurance and property taxes 4 Distribution salaries 5 Marketing salaries 6 Engineer salaries 7 Warehouse wages 8 Equipment depreciation 9 2. For which costs might the director be expected to request supplemental reports? All salaries: customer service, distribution, marketing, and engineer Customer service salaries Customer service and marketing salaries as well as warehouse wages Customer service and marketing salaries Warehouse wages and engineer salaries Marketing salaries

Answer 1