Question: Valotic Tech Inc. sells electronics over the Internet. The Consumer Products Division is organized as a cost center. The budget for the Consumer Products Division
Valotic Tech Inc. sells electronics over the Internet. The Consumer Products Division is organized as a cost center. The budget for the Consumer Products Division for the month ended January 31 is as follows:
1
Customer service salaries
$546,840.00
2
Insurance and property taxes
114,660.00
3
Distribution salaries
872,340.00
4
Marketing salaries
1,028,370.00
5
Engineer salaries
836,850.00
6
Warehouse wages
586,110.00
7
Equipment depreciation
183,792.00
8
Total
$4,168,962.00
During January, the costs incurred in the Consumer Products Division were as follows:
1
Customer service salaries
$602,350.00
2
Insurance and property taxes
110,240.00
3
Distribution salaries
861,200.00
4
Marketing salaries
1,085,230.00
5
Engineer salaries
820,008.00
6
Warehouse wages
562,632.00
7
Equipment depreciation
183,610.00
8
Total
$4,225,270.00
Required:
1. Prepare a budget performance report for the director of the Consumer Products Division for the month of January. Enter all amounts as positive numbers. 2. For which costs might the director be expected to request supplemental reports?
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