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	$409,200		$409,200				$0
Central Region	294,600		291,700		$2,900
Western Region	(g)		(h)				(i)
	$(j)		$(k)		$(l)		$3,220

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	82,130		83,200				1,070
Final Assembly	132,230		131,170		$1,060
	$(d)		$(e)		$(f)		$4,280

Garland Company Budget Performance Report—Supervisor, Chip Fabrication For the Month Ended November 30
Cost	Actual		Budget		Over Budget		Under Budget
Factory wages	$30,060		$32,160				$2,100
Materials	65,570		65,110		$460
Power and light	4,680		5,570				890
Maintenance	7,180		7,860				680
	$107,490		$110,700		$460		$3,670

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. $

Answer 1

Answer -

a.	$107,490	g.	$321,850
b.	$110,700	h.	$325,070
c.	$3,210	i.	$3,220
d.	$321,850	j.	$1,025,650
e.	$325,070	k.	$1,025,970
f.	$1,060	l.	$2,900

Calculation:

(a) Chip fabrication-Actual cost = $107490

Already given in Budget performance report-Supervisor, Chip fabrication as a total of actual cost

(b) Chip fabrication-Budget cost = $110700

Already given in Budget performance report-Supervisor, Chip fabrication as a total of budget cost

(c) Chip fabrication-Under budget:

= Chip fabrication-Budget cost - Chip fabrication-Actual cost

= $110700 - $107490

= $3210

(d) Total of department-Actual cost:

= Chip fabrication-Actual cost + Electronic assembly-Actual cost + Final assembly-Actual cost

= $107490 + $82130 + $132230

= $321850

(e) Total of department-Budget cost:

= Chip fabrication- Budget cost + Electronic assembly- Budget cost + Final assembly- Budget cost

= $110700 + $83200 + $131170

= $325070

(f) Total of department-Over budget:

= Total of department-Under budget - (Total of department-Budget cost - Total of department-Actual cost)

= $4280 - ($325070 - $321850)

= $1060

(g) Western region-Actual cost:

Here,

Western region-Actual cost = Total of department-Actual cost

We are already calculated Total of department-Actual cost in Budget performance report-Manger, Western region plant

So,

Western region-Actual cost = $321850

(h) Western region-Budget cost:

Here,

Western region- Budget cost = Total of department- Budget cost

We are already calculated Total of department- Budget cost in Budget performance report-Manger, Western region plant

So,

Western region- Budget cost = $325070

(i) Western region- Under budget:

= Western region- Budget cost - Western region-Actual cost

= $325070 - $321850

= $3220

(j) Total of plant-Actual cost:

= Eastern region-Actual cost + Central region-Actual cost + Western region-Actual cost

= $409200 + $294600 + $321850

= $1025650

(k) Total of plant-Budget cost:

= Eastern region-Budget cost + Central region-Budget cost + Western region-Budget cost

= $409200 + $291700 + $325070

= $1025970

(l) Total of plant-Over budget:

= Total of plant-Under budget - (Total of plant-Budget cost - Total of plant-Actual cost)

= $3220 - ($1025970 - $1025650)

= $2900