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	$549,800		$549,800				$0
Central Region	395,900		391,900		4,000
Western Region	(g)		(h)				(i)
	$(j)		$(k)		$(l)		$3,170

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	83,630		84,720				1,090
Final Assembly	134,640		133,560		$1,080
	$(d)		$(e)		$(f)		$4,250

Garland Company Budget Performance Report—Supervisor, Chip Fabrication For the Month Ended November 30
Cost	Actual		Budget		Over Budget		Under Budget
Factory wages	$28,770		$30,780				$2,010
Materials	64,070		63,620		$450
Power and light	4,380		5,210				830
Maintenance	8,110		8,880				770
	$105,330		$108,490		$450		$3,610

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 in wages, power and light, and maintenance that exceeded a budget in materials.

Answer 1

• All working forms part of the answer.
• TO find missing figures, complete tables are to be considered.
• First Of all, the #2 table is to be completed using Table #3 as follows:

Garland Company
Budget Performance Report—Manager, Western Region Plant
For the Month Ended November 30
Department	Actual	Budget	Over Budget	Under Budget
	[A]	[B]	[A – B]	[B – A]
Chip Fabrication	$                           105,330.00	$            108,490.00		$                          3,160.00
Electronic Assembly	$                             83,630.00	$               84,720.00		$                          1,090.00
Final Assembly	$                           134,640.00	$             133,560.00	$                       1,080.00
TOTAL	$                           323,600.00	$             326,770.00	$                       1,080.00	$                          4,250.00

• From above Table, Table #1 is to be completed, as follows:

Garland Company
Budget Performance Report—Vice President, Production
For the Month Ended November 30
Plant	Actual	Budget	Over Budget	Under Budget
	[A]	[B]	[A – B]	[B – A]
Eastern Region	$                           549,800.00	$             549,800.00	$                                    -	$                                       -
Central Region	$                           395,900.00	$             391,900.00	$                       4,000.00
Western Region	$                           323,600.00	$             326,770.00		$                          3,170.00
TOTAL	$                       1,269,300.00	$         1,268,470.00	$                       4,000.00	$                          3,170.00

• Requirement ‘a’: Missing figures

Questions	Answer figure
a.	$                   105,330.00
b.	$                   108,490.00
c.	$                        3,160.00
d.	$                   323,600.00
e.	$                   326,770.00
f.	$                        1,080.00
g.	$                   323,600.00
h.	$                   326,770.00
i.	$                        3,170.00
j.	$               1,269,300.00
k.	$               1,268,470.00
l.	$                        4,000.00