Amoruso Parts Company sells vehicle parts to automotive companies. The Truck Division is organized as a cost center. The budget for the Truck Division for the month ended October 31, 2010, is as follows (in thousands):
Customer service salaries ........ $ 260,450
Insurance and property taxes ....... 54,600
Distribution salaries .......... 415,400
Marketing salaries ............. 489,700
Engineer salaries ............ 398,500
Warehouse wages ............ 279,100
Equipment depreciation .......... 87,500
Total ............... $1,985,250
During October, the costs incurred in the Truck Division were as follows:
Customer service salaries ..... $ 333,370
Insurance and property taxes ..... 52,960
Distribution salaries ........ 411,250
Marketing salaries .......... 548,460
Engineer salaries .......... 390,530
Warehouse wages ......... 267,930
Equipment depreciation ........ 87,500
Total ............. $2,092,000
Instructions
1. Prepare a budget performance report for the director of the Truck Division for the month of October.
2. For which costs might the director be expected to request supplemental reports?