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, 2016, is as follows (in thousands):

 

Customer service salaries……………….……………………	$546,840
Insurance and property taxes…………………………………	114,660
Distribution salaries…………………………………………..	872,340
Marketing salaries……………………………………………	1,028,370
Engineer salaries…………………………………………….	836,850
Warehouse wages……………………………………………	586,110
Equipment depreciation……………………………………..	183,792
Total ……………………………………………………….	$4,168,962
During January, the costs incurred in the Consumer Products Division were as follows:
Customer service salaries……………………………………	$602,350
Insurance and property taxes………………………………..	110,240
Distribution salaries…………………………………………	861,200
Marketing salaries…………………………………………..	1,085,230
Engineer salaries……………………………………………	820,008
Warehouse wages……………………………………………	562,632
Equipment depreciation……………………………………..	183,610
Total ………………………………………………………….	$4,225,270

Instructions

1. Prepare a budget performance report for the director of the Consumer Products Division for the month of January.

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