Question
In: Accounting
Valotic Tech Inc. sells electronics over the Internet. The Consumer Products Division is organized as a...
Valotic Tech Inc. sells electronics over the Internet. The Consumer Products Division is organized as a cost center. The budget for the Consumer Products Division for the month ended January 31 is as follows:
|
1 |
Customer service salaries |
$546,840.00 |
|
2 |
Insurance and property taxes |
114,660.00 |
|
3 |
Distribution salaries |
872,340.00 |
|
4 |
Marketing salaries |
1,028,370.00 |
|
5 |
Engineer salaries |
836,850.00 |
|
6 |
Warehouse wages |
586,110.00 |
|
7 |
Equipment depreciation |
183,792.00 |
|
8 |
Total |
$4,168,962.00 |
During January, the costs incurred in the Consumer Products Division were as follows:
|
1 |
Customer service salaries |
$602,350.00 |
|
2 |
Insurance and property taxes |
110,240.00 |
|
3 |
Distribution salaries |
861,200.00 |
|
4 |
Marketing salaries |
1,085,230.00 |
|
5 |
Engineer salaries |
820,008.00 |
|
6 |
Warehouse wages |
562,632.00 |
|
7 |
Equipment depreciation |
183,610.00 |
|
8 |
Total |
$4,225,270.00 |
| Required: | |
|---|---|
| 1. | Prepare a budget performance report for the director of the Consumer Products Division for the month of January. Enter all amounts as positive numbers. |
| 2. | For which costs might the director be expected to request supplemental reports? |
1. Prepare a budget performance report for the director of the Consumer Products Division for the month of January. Enter all amounts as positive numbers.
|
Valotic Tech Inc. |
|
Budget Performance Report—Director, Consumer Products Division |
|
For the Month Ended January 31 |
|
1 |
Budget |
Actual |
Over Budget |
Under Budget |
|
|
2 |
Customer service salaries |
||||
|
3 |
Insurance and property taxes |
||||
|
4 |
Distribution salaries |
||||
|
5 |
Marketing salaries |
||||
|
6 |
Engineer salaries |
||||
|
7 |
Warehouse wages |
||||
|
8 |
Equipment depreciation |
||||
|
9 |
Total |
|
2. For which costs might the director be expected to request supplemental reports?
All salaries: customer service, distribution, marketing, and engineer.
Customer service and marketing salaries as well as warehouse wages.
Marketing salaries.
Customer service salaries.
Warehouse wages and engineer salaries.
Customer service and marketing salaries.
Solutions
Expert Solution
| Valotic Tech Inc. | ||||
| Budget Performance Report—Director, Consumer Products Division | ||||
| For the Month Ended January 31 | ||||
| Budget | Budget | Actual | Over Budget | Under Budget |
| Customer service salaries | $ 5,46,840.00 | $ 6,02,350.00 | $ 55,510.00 | |
| Insurance and property taxes | $ 1,14,660.00 | $ 1,10,240.00 | $ 4,420.00 | |
| Distribution salaries | $ 8,72,340.00 | $ 8,61,200.00 | $ 11,140.00 | |
| Marketing salaries | $ 10,28,370.00 | $ 10,85,230.00 | $ 56,860.00 | |
| Engineer salaries | $ 8,36,850.00 | $ 8,20,008.00 | $ 16,842.00 | |
| Warehouse wages | $ 5,86,110.00 | $ 5,62,632.00 | $ 23,478.00 | |
| Equipment depreciation | $ 1,83,792.00 | $ 1,83,610.00 | $ 182.00 | |
| Total | $ 41,68,962.00 | $ 42,25,270.00 | $ 1,12,370.00 | $ 56,062.00 |
| Hence there is no additional data in the question, second part can only be answered like the following | ||||
| All salaries: customer service, distribution, marketing, and engineer. | ||||
| Budget | Budget | Actual | Over Budget | Under Budget |
| Customer service salaries | $ 5,46,840.00 | $ 6,02,350.00 | $ 55,510.00 | |
| Distribution salaries | $ 8,72,340.00 | $ 8,61,200.00 | $ 11,140.00 | |
| Marketing salaries | $ 10,28,370.00 | $ 10,85,230.00 | $ 56,860.00 | |
| Engineer salaries | $ 8,36,850.00 | $ 8,20,008.00 | $ 16,842.00 | |
| Total | $ 32,84,400.00 | $ 33,68,788.00 | $ 1,12,370.00 | $ 27,982.00 |
| Customer service and marketing salaries as well as warehouse wages | ||||
| Budget | Budget | Actual | Over Budget | Under Budget |
| Customer service salaries | $ 5,46,840.00 | $ 6,02,350.00 | $ 55,510.00 | |
| Marketing salaries | $ 10,28,370.00 | $ 10,85,230.00 | $ 56,860.00 | |
| Warehouse wages | $ 5,86,110.00 | $ 5,62,632.00 | $ 23,478.00 | |
| Total | $ 21,61,320.00 | $ 22,50,212.00 | $ 1,12,370.00 | $ 23,478.00 |
| Marketing salaries. | ||||
| Budget | Budget | Actual | Over Budget | Under Budget |
| Marketing salaries | $ 10,28,370.00 | $ 10,85,230.00 | $ 56,860.00 | |
| Total | $ 10,28,370.00 | $ 10,85,230.00 | $ 56,860.00 | $ - |
| Customer service salaries. | ||||
| Budget | Budget | Actual | Over Budget | Under Budget |
| Customer service salaries | $ 5,46,840.00 | $ 6,02,350.00 | $ 55,510.00 | |
| Total | $ 5,46,840.00 | $ 6,02,350.00 | $ 55,510.00 | $ - |
| Warehouse wages and engineer salaries. | ||||
| Budget | Actual | Over Budget | Under Budget | |
| Engineer salaries | $ 8,36,850.00 | $ 8,20,008.00 | $ 16,842.00 | |
| Warehouse wages | $ 5,86,110.00 | $ 5,62,632.00 | $ 23,478.00 | |
| Total | $ 14,22,960.00 | $ 13,82,640.00 | $ - | $ 40,320.00 |
| Customer service and marketing salaries. | ||||
| Budget | Budget | Actual | Over Budget | Under Budget |
| Customer service salaries | $ 5,46,840.00 | $ 6,02,350.00 | $ 55,510.00 | |
| Marketing salaries | $ 10,28,370.00 | $ 10,85,230.00 | $ 56,860.00 | |
| Total | $ 15,75,210.00 | $ 16,87,580.00 | $ 1,12,370.00 | $ - |
ekkarill92 answered 1 year agoRelated Solutions
Valotic Tech Inc. sells electronics over the Internet. The Consumer Products Division is organized as a...
Valotic Tech Inc. sells electronics over the Internet. The Consumer
Products Division is organized as a cost center. The budget for the
Consumer Products Division for the month ended January 31 is as
follows:
1
Customer service salaries
$546,840.00
2
Insurance and property taxes
114,660.00
3
Distribution salaries
872,340.00
4
Marketing salaries
1,028,370.00
5
Engineer salaries
836,850.00
6
Warehouse wages
586,110.00
7
Equipment depreciation
183,792.00
8
Total
$4,168,962.00
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Question not attempted.
1
Customer service salaries
$546,840.00
2
Insurance and property taxes
114,660.00
3
Distribution salaries
872,340.00
4
Marketing salaries
1,028,370.00
5
Engineer salaries
836,850.00
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Warehouse wages
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Equipment depreciation
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has several dozen plants scattered in locations throughout the
world. Mary manages the plant located in Des Moines, Iowa, while
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managers are paid a salary and get an additional bonus equal to 10%
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target profits for the year. The bonus is...
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