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	$929,000	$926,750		$(2,250)
Central Region	669,600	665,900		(3,700)
Western Region	(G)	(H)	$(I)
	$(J)	$(K)	$(L)	$(5,950)

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	191,750	194,350	2,600
Final Assembly	307,050	306,280		$(770)
	$(D)	$(E)	$(F)	$(770)

Garland Company
Budget Performance Report—Supervisor, Chip Fabrication
For the Month Ended November 30
Cost	Budget	Actual	Over Budget	Under Budget
Factory wages	$59,200	$60,620	$1,420
Materials	155,100	154,000		$(1,100)
Power and light	8,620	10,120	1,500
Maintenance	15,200	16,560	1,360
	$238,120	$241,300	$4,280	$(1,100)

	Required:
a.	Complete the budget performance reports by determining the correct amounts for the lettered spaces. Enter all amounts as positive numbers. No decimal places are needed.
b.	Explain the performance of the production division for November.

Budget Performance Reports

a. Complete the budget performance reports by determining the correct amounts for the lettered spaces. Enter all amounts as positive numbers. No decimal places are needed.

A.
B.
C.
D.
E.
F.
G.
H.
I.
J.
K.
L.

Final Question

b. Explain the performance of the production division for November.

The budget for the Production Division shows that one plant has experienced a . Investigating further, the budget for the Western Region Plant reveals that only the is performing . The budget for the Chip Fabrication Department indicates that the problem is caused by a combination of in wages, power and light, and maintenance that exceeded a budget for materials.

Answer 1

Answer a.

Answer b.

The budget for the Production Division shows that one plant has experienced a budget overrun. Investigating further, the budget for the Western Region Plant reveals that only the Chip Fabrication Department is performing poorly. The budget for the Chip Fabrication Department indicates that the problem is caused by a combination of budget overrun in wages, power and light, and maintenance that exceeded a budget surplus for materials.