Question

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	Actual		Budget		Over Budget		Under Budget
Eastern Region	$495,600		$495,600				$0
Central Region	356,800		353,200		$3,600
Western Region	(g)		(h)				(i)
	$(j)		$(k)		$(l)		$3,140

Garland Company Budget Performance Report—Manager, Western Region Plant For the Month Ended November 30
Department	Actual		Budget		Over Budget		Under Budget
Chip Fabrication	$(a)		$(b)				$(c)
Electronic Assembly	83,060		84,140				1,080
Final Assembly	132,070		131,010		$1,060
	$(d)		$(e)		$(f)		$4,200

Garland Company Budget Performance Report—Supervisor, Chip Fabrication For the Month Ended November 30
Cost	Actual		Budget		Over Budget		Under Budget
Factory wages	$30,190		$32,300				$2,110
Materials	66,180		65,720		$460
Power and light	4,500		5,360				860
Maintenance	6,390		7,000				610
	$107,260		$110,380		$460		$3,580

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. The budget for the Chip Fabrication Department indicates that the budget overrun was caused by a combination of budget (SURPLUS/OVERRUN) in factory wages, power and light, and maintenance that exceeded a budget (SURPLUS/OVERRUN) in materials.

Answer 1

The budget for the Chip Fabrication Department indicates that the budget overrun was caused by a combination of budget overruns in factory wages, power and light, and maintenance that exceeded a budget surplus in materials.