Jillian Taylor manages the Colorado mortgage processing office of M& S Financial Services. M& S generates mortgage

Question:

Jillian Taylor manages the Colorado mortgage processing office of M& S Financial Services. M& S generates mortgage applications via Internet leads that are followed up by a sales force that reports to a manager other than Jillian. Once the salespeople secure a mortgage application from a client, Jillian€™s office prepares all the various mortgage documents required to close the mortgage for M& S and provide the financing to the client. In preparing her budget for next year, she estimates the following budgeted amounts:

All of Jillian€™s expenses are for mortgage processors. The costs of the salespeople and marketing expenses are in a different budget. Since the number of mortgages expected to be processed each month does not vary over the fiscal year, Jillian and M& S prepare a budget for a typical month and use it for all 12 months in the fiscal year. Required: a. Jillian and M& S senior management forecast 90 mortgages per month will be processed in the Colorado office. Prepare the monthly budget for Jillian€™s office for next year, assuming 90 mortgages per month. b. After the budget is prepared, the economy slips into a severe recession and home sales, new mortgages, and mortgage refinancings fall dramatically. In May ( the fifth month of the fiscal year), Jillian€™s office processes 70 mortgages and has the following operating expenses:
Actual Costs
Salaries ......... $ 17,500
Supplies......... 1,550
Legal ........... 4,100
Telecom IT ......... 920
Occupancy ......... 3,100
Based on the budget from part (a), prepare a performance report for Jillian€™s operations for the month of May.
c. Write a short memo summarizing Jillian€™s performance based on the performance report prepared in part (b).
d. Does the performance report in part (b) accurately measure Jillian€™s performance in May? What ( if any) changes in the performance report would yourecommend?