Question

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	$577,200		$577,200				$0
Central Region	415,600		411,400				(4,200)
Western Region	(g)		(h)		(i)
	$(j)		$(k)		$(l)		$(4,200)

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	90,300		91,470		1,170
Final Assembly	144,480		143,320				$(1,160)
	$(d)		$(e)		$(f)		$(1,160)

Garland Company Budget Performance Report—Supervisor, Chip Fabrication For the Month Ended November 30
Cost	Budget		Actual		Over Budget		Under Budget
Factory wages	$29,460		$31,520		$2,060
Materials	74,910		74,390				$(520)
Power and light	4,060		4,830		770
Maintenance	6,080		6,660		580
	$114,510		$117,400		$3,410		$(520)

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. Complete the following memo to Cassandra Reid, vice president of production for Garland Company, explaining the performance of the production division for November.

Answer 1

Answer a.

Answer b.

MEMO
To: Cassandra Reid, Vice President of Production

The Western Region plant has experienced a budget overrun. Its budget reveals that the Chip Fabrication Department caused the majority of the budget overrun. The supervisor of the Chip Fabrication Department should investigate the reasons for the budget overruns in factory wages, power and light, and maintenance.