In: Accounting
The budget for Department 5 of Plant M for the current month ending March 31 is as follows:
Materials | $206,000 |
Factory wages | 265,000 |
Supervisory salaries | 67,800 |
Depreciation of plant and equipment | 35,000 |
Power and light | 22,500 |
Insurance and property taxes | 15,500 |
Maintenance | 9,700 |
During March, the costs incurred in Department 5 of Plant M were materials, $204,000; factory wages, $285,000; supervisory salaries, $63,600; depreciation of plant and equipment, $35,000; power and light, $21,360; insurance and property taxes, $14,400; maintenance, $9,456.
a. Prepare a budget performance report for the supervisor of Department 5 of Plant M for the month of March. Enter all amounts as positive values.
Budget Performance Report | ||||
Supervisor, Department 5--Plant M | ||||
For Month Ended March 31, 20-- | ||||
Budget | Actual | Over Budget | Under Budget | |
Materials | $ | $ | $ | |
Factory wages | $ | |||
Supervisory salaries | ||||
Depreciation of plant and equipment | ||||
Power and light | ||||
Insurance and property taxes | ||||
Maintenance | ||||
$ | $ | $ | $ |
b. Are there any significant variances (greater
than 5%) of the budgeted amounts that should be examined by the
supervisor?
Yes