The Furnishings Company sells furnishings and fixtures over the Internet. The International Division is organized as a cost center. The budget for the International Division for the month ended October 31, 2008, is as follows (in millions):

Customer service salaries ... $ 119

Insurance and property taxes ... 32

Distribution salaries ...... 238

Marketing salaries ........ 336

Engineer salaries ........ 217

Warehouse wages ....... 147

Equipment depreciation ..... 45

Total ............ $1,134

During October, the costs incurred in the International Division were as follows:

Customer service salaries .. $ 153

Insurance and property taxes ... 31

Distribution salaries ..... 235

Marketing salaries ..... 377

Engineer salaries ....... 213

Warehouse wages ...... 141

Equipment depreciation ..... 45

Total .......... $1,195

Instructions

1. Prepare a budget performance report for the director of the International Division for the month of October.

2. For which costs might the director be expected to request supplemental reports?