Question

Please answer both parts to problem 1

1A. Partially completed budget performance reports for Garland Company, a manufacturer of light duty motors, follow:

Garland Company Budget Performance Report—Vice President, Production For the Month Ended November 30
Plant	Budget		Actual		Over Budget		Under Budget
Eastern Region	$509,000		$509,000				$0
Central Region	366,500		362,800				(3,700)
Western Region	(g)		(h)		(i)
	$(j)		$(k)		$(l)		$(3,700)

Garland Company Budget Performance Report—Manager, Western Region Plant For the Month Ended November 30
Department	Budget		Actual		Over Budget		Under Budget
Chip Fabrication	$(a)		$(b)		$(c)
Electronic Assembly	98,510		99,790		1,280
Final Assembly	158,600		157,330				$(1,270)
	$(d)		$(e)		$(f)		$(1,270)

Garland Company Budget Performance Report—Supervisor, Chip Fabrication For the Month Ended November 30
Cost	Budget		Actual		Over Budget		Under Budget
Factory wages	$19,890		$21,280		$1,390
Materials	65,860		65,400				$(460)
Power and light	4,520		5,380		860
Maintenance	5,920		6,480		560
	$96,190		$98,540		$2,810		$(460)

a. Complete the budget performance reports by determining the correct amounts for the lettered spaces (a-l) as marked above.

a. $	g. $
b. $	h. $
c. $	i. $
d. $	j. $
e. $	k. $
f. $	l. $

b. Complete the following memo to Cassandra Reid, vice president of production for Garland Company, explaining the performance of the production division for November.

MEMO
To: Cassandra Reid, Vice President of Production

The   plant has experienced a budget overrun. Its budget reveals that the   Department caused the majority of the budget overrun. The supervisor of the   Department should investigate the reasons for the budget overruns in  .

1B. Yozamba Technology has two divisions, Consumer and Commercial, and two corporate service departments, Tech Support and Purchasing. The corporate expenses for the year ended December 31, 20Y7, are as follows:

Tech Support Department	$492,000
Purchasing Department	75,600
Other corporate administrative expenses	575,000
Total corporate expense	$1,142,600

The other corporate administrative expenses include officers’ salaries and other expenses required by the corporation. The Tech Support Department charges the divisions for services rendered, based on the number of computers in the department, and the Purchasing Department charges divisions for services, based on the number of purchase orders for each department. The usage of service by the two divisions is as follows:

	Tech Support	Purchasing
Consumer Division	340 computers	1,930 purchase orders
Commercial Division	260	3,470
Total	600 computers	5,400 purchase orders

The service department charges of the Tech Support Department and the Purchasing Department are considered controllable by the divisions. Corporate administrative expenses are not considered controllable by the divisions. The revenues, cost of goods sold, and operating expenses for the two divisions are as follows:

	Consumer	Commercial
Revenues	$7,460,000	$6,180,000
Cost of goods sold	4,112,000	3,122,500
Operating expenses	1,462,000	1,549,500

Required:

Prepare the divisional income statements for the two divisions. Refer to the list of Label and Amount Descriptions for the exact wording of the answer choices for text entries. A colon (:) will fill in where needed.

Answer 1

Ques 1:

Ques 2: