MANAGERIAL ACCOUNTING HANDOUT PROBLEM 8 Name Score Section Problem (10 points). The supervisor of the Polishing Department for Longan Silver Corporation received the attached performance report for the month of July, 20x7. It was noted that eight of the twelve items were over budget and that the 4.5 percent excess of actual over budgeted cost needed to be corrected. REQUIRED: (1) (2) Using the concept of controllable costs, identify the costs that should not be in this performance report. Give reasons for your answers. In a properly structured accounting report, what should be the difference between the budgeted and actual costs for the month of July, 20X7? Show calculations. LONGAN SILVER CORPORATION PERFORMANCE REPORT, POLISHING DEPARTMENT FOR THE MONTH ENDED JULY 31, 20X7 Actual Difference Over (Under) Budget 50 $ Budgeted 4,200 S 1.140 7.400 1.300 2,040 4,250 $ 1.210 6,900 70 500) 1,900 2.250 600 210 150 Polishing Materials, Direct Polishing Materials. Indirect Wages of Polishing Employees Wages of Service Functions. Allocated Depreciation Expense, Polishing Machinery Depreciation Expense, Corporate, Allocated Electric Power, Direct, To Polishing Machines Electric Power. Corporate, Allocated Equipment Rental, Polishing Insurance Expense, Polishing Insurance Expense, Corporate, Allocated Accounting Department, Corporate, Allocated Totals 1.200 1,460 1.350 1,410 940 ( 680 50) 260 40) 1.830 320 1.790 320 0 290 380 90 1,420 200 1.620 24.320 S $ 23.280S 1,040