Question: Budget Performance Reports for Cost Centers Partially completed budget performance reports for Delmar Company, a manufacturer of light duty motors, follow: Delmar Company Budget Performance
Budget Performance Reports for Cost Centers
Partially completed budget performance reports for Delmar Company, a manufacturer of light duty motors, follow:
| Plant | Actual | Budget | Over Budget | (Under) Budget | |
|---|---|---|---|---|---|
| Eastern Region | $422,800 | $422,800 | $0 | ||
| Central Region | 301,400 | 304,400 | (3,000) | ||
| Western Region | (g) | (h) | (i) | ||
| $(j) | $(k) | $(l) | $(3,000) |
| Department | Actual | Budget | Over Budget | (Under) Budget |
|---|---|---|---|---|
| Chip Fabrication | $(a) | $(b) | $(c) | |
| Electronic Assembly | 75,120 | 74,160 | 960 | |
| Final Assembly | 116,970 | 117,910 | $(940) | |
| $(d) | $(e) | $(f) | $(940) |
| Cost | Actual | Budget | Over Budget | (Under) Budget |
|---|---|---|---|---|
| Factory wages | $21,260 | $19,870 | $1,390 | |
| Materials | 74,890 | 75,420 | $(530) | |
| Power and light | 3,840 | 3,230 | 610 | |
| Maintenance | 7,130 | 6,510 | 620 | |
| $107,120 | $105,030 | $2,620 | $(530) |
a. Complete the budget performance reports by determining the correct amounts for the lettered spaces (a-l) as marked above.
| Amount | Amount |
|---|---|
| a. $fill in the blank 1 | g. $fill in the blank 2 |
| b. $fill in the blank 3 | h. $fill in the blank 4 |
| c. $fill in the blank 5 | i. $fill in the blank 6 |
| d. $fill in the blank 7 | j. $fill in the blank 8 |
| e. $fill in the blank 9 | k. $fill in the blank 10 |
| f. $fill in the blank 11 | l. $fill in the blank 12 |
b. Complete the following memo to Randi Wilkes, vice president of production for Delmar Company, explaining the performance of the production division for June.
MEMO To: Randi Wilkes, Vice President of Production
The fill in the blank 1 of 4
Eastern RegionCentral RegionWestern RegionWestern Region
plant has experienced a budget overrun. Its budget reveals that the fill in the blank 2 of 4
Chip FabricationElectronic AssemblyFinal AssemblyChip Fabrication
Department caused the majority of the budget overrun. The supervisor of the fill in the blank 3 of 4
Chip FabricationElectronic AssemblyFinal AssemblyChip Fabrication
Department should investigate the reasons for the budget overruns in fill in the blank 4 of 4
factory wages, materials, and maintenancematerials, power and light, and maintenancefactory wages, power and light, and maintenancefactory wages, power and light, and maintenance
.
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