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	Actual		Budget		Over Budget		Under Budget
   Eastern Region	$383,400		$383,400				$0
   Central Region	276,000		273,200		$2,800
   Western Region	(g)		(h)				(i)
   	$(j)		$(k)		$(l)		$2,760

   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	87,080		88,210				1,130
   Final Assembly	139,330		138,220		$1,110
   	$(d)		$(e)		$(f)		$3,870

   Garland Company Budget Performance Report—Supervisor, Chip Fabrication For the Month Ended November 30
   Cost	Actual		Budget		Over Budget		Under Budget
   Factory wages	$23,190		$24,810				$1,620
   Materials	70,150		69,660		$490
   Power and light	4,780		5,690				910
   Maintenance	7,420		8,120				700
   	$105,540		$108,280		$490		$3,230

   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

   • surpluses
   • overruns
   in factory wages, power and light, and maintenance that exceeded a budget
   • surplus
   • overrun
   in materials.

Answer 1

Cost	Actual	Budget	Over budget	Under budget
Factory wages	23190	24810		(1620)
Materials	70150	69660	490
Power and light	4780	5690		(910)
Maintenance	7420	8120		(700)
Total	105,540	108,280	490	(3230)

Department	Actual	Budget	Over budget	Under budget
Chip Fabrication	(a) 105,540	(b) 108,280		(c) (2,740)
Electronic Assembly	87080	88210		(1130)
Final Assembly	139330	138220	1110
Total	(d) 331,950	(e) 334,710	(f) 1,110	(3870)

Plant	Actual	Budget	Over budget	Under budget
Eastern Region	383400	383400
Central Region	276000	273200	2800
Western Region	(g) 331,950	(h) 334,710		(i) (2,760)
Total	(j) 991,350	(k) 991,310	(l) 2,800	(2,760)

(b) 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 overrun in materials