Question

Sneed Industries Company sells vehicle parts to manufacturers of heavy construction equipment. The Crane Division is organized as a cost center. The budget for the Crane Division for the month ended August 31, 2012, is as follows (in thousands):
Customer service salaries ...... $ 250,000
Insurance and property taxes ....... 50,000
Distribution salaries ......... 475,000
Marketing salaries ......... 300,000
Engineer salaries .......... 740,000
Warehouse wages ......... 280,000
Equipment depreciation ....... 155,000
Total .............. $2,250,000

During August, the costs incurred in the Crane Division were as follows:
Customer service salaries ........ $ 368,000
Insurance and property taxes ........ 49,100
Distribution salaries ........... 469,500
Marketing salaries ............. 371,000
Engineer salaries ............ 738,250
Warehouse wages ............. 274,900
Equipment depreciation .......... 155,000
Total ................. $2,425,750

Instruction
1. Prepare a budget performance report for the director of the Crane Division for the month of August.
2. For which costs might the director be expected to request supplemental reports?



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  • CreatedFebruary 04, 2014
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