A bank manager of Oxford First Bank Inc. uses the managerial accounting system to track the costs of operating the various departments within the bank.

The departments include Cash Management, Trust, Commercial Loans, Mortgage Loans, Operations, Credit Card, and Branch Services. The budget and actual results for the Operations Department are as follows:

a. What information is provided by the budget? Specifically, what questions can the bank manager ask of the Operations Department manager?
b. What information does the budget fail to provide? Specifically, could the bud-get information be presented differently to provide even more insight for the bankmanager?

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Budget 5300,000 40,000 27,000 15,000 13,000 20,000 $415,000 $20,000 Actual Resources Salaries Benefits Supplies Travel Training Overtime Total $300,000 40,000 22,000 43,000 15,000 15,000 $435,000 Excess of actual over budget