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	Budget		Actual		Over Budget		Under Budget
Eastern Region	$530,900		$530,900				$0
Central Region	382,200		378,400				(3,800)
Western Region	(g)		(h)		(i)
	$(j)		$(k)		$(l)		$(3,800)

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	66,640		67,510		870
Final Assembly	105,960		105,110				$(850)
	$(d)		$(e)		$(f)		$(850)

Garland Company Budget Performance Report—Supervisor, Chip Fabrication For the Month Ended November 30
Cost	Budget		Actual		Over Budget		Under Budget
Factory wages	$30,360		$32,490		$2,130
Materials	59,000		58,590				$(410)
Power and light	4,280		5,090		810
Maintenance	7,180		7,860		680
	$100,820		$104,030		$3,620		$(410)

a. Complete the budget performance reports by determining the correct amounts for the lettered spaces (a-l) as marked above.

Answer 1

a. Complete the budget performance reports by determining the correct amounts for the lettered spaces (a-l) as marked above.

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Budget Performance Reports for Cost Centers

Partially completed budget performance reports for Garland Company,

.

Garland Company Budget Performance Report—Vice President, Production For the Month Ended November 30
Plant	Budget	Actual	Over Budget	Under Budget
Eastern Region	$530,900	$530,900		$0
Central Region	382,200	378,400		(3,800)
Western Region	(g) $273420	(h) $276650	(i) $3230
	(j) $1186520	(k) $1185950	(l)$3230	$(3,800)

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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) $100,820	(b) $104,030	(c) $3210
Electronic Assembly	66,640	67,510	870
Final Assembly	105,960	105,110		$(850)
	(d) $273420	(e) $276650	(f) 4080	$(850)

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Garland Company Budget Performance Report—Supervisor, Chip Fabrication For the Month Ended November 30
Cost	Budget	Actual	Over Budget	Under Budget
Factory wages	$30,360	$32,490	$2,130
Materials	59,000	58,590		$(410)
Power and light	4,280	5,090	810
Maintenance	7,180	7,860	680
	$100,820	$104,030	$3,620	$(410)

(a) - Total Budget cost in Chip fabrication department = $100,820

(b) - Total actually incurred cost in Chip fabrication department = $104,030

(c) - here actually incurred is higher than Budgeted, so Over budget 104030 - 100820 = 3210

(d) Sum of total budgeted cost in Western Region Plant = 100820 + 66640 + 105960 = 273420

(e) Sum of total Actually incurred cost in Region Plant = 104030 + 67510 + 105110 = $276650

(f) Total over budget column = $3210 + $870 = $4080

(g) - Total Budget cost in Western Region Plant = $273420

(h) - Total actually incurred cost in Western Region Plant = $276650

(i) - here actually incurred cost is over than Budgeted, so Over budget = 276650 - 273420 = $3230

(j) Sum of total budgeted cost for Production = 530,900 + 382,200 + 273420 = $1186520

(k) Sum of total Actually incurred cost in Region Plant = 530,900 + 378,400 + 276650 = $1185950

(l) Total over budget column = $3230