Question

Budget Performance Reports for Cost Centers

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	Actual		Budget		Over Budget		Under Budget
Eastern Region	$543,100		$543,100				$0
Central Region	391,000		387,100		$3,900
Western Region	(g)		(h)				(i)
	$(j)		$(k)		$(l)		$2,740

Garland Company Budget Performance Report—Manager, Western Region Plant For the Month Ended November 30
Department	Actual		Budget		Over Budget		Under Budget
Chip Fabrication	$(a)		$(b)				$(c)
Electronic Assembly	84,810		85,910				1,100
Final Assembly	135,700		134,610		$1,090
	$(d)		$(e)		$(f)		$3,830

Garland Company Budget Performance Report—Supervisor, Chip Fabrication For the Month Ended November 30
Cost	Actual		Budget		Over Budget		Under Budget
Factory wages	$24,020		$25,700				$1,680
Materials	59,460		59,040		$420
Power and light	3,460		4,120				660
Maintenance	8,500		9,310				810
	$95,440		$98,170		$420		$3,150

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. The budget for the Chip Fabrication Department indicates that the budget overrun was caused by a combination of budget   in factory wages, power and light, and maintenance that exceeded a budget   in materials.

Answer 1

(a)

Cost	Actual	Budget	Over Budget	Under budget
Factory wages	24020	25700		1680
Materials	59460	59040	420
Power and light	3460	4120		660
Maintenance	8500	9310		810
	95,440	98,170	420	3,150

Department	Actual	Budget	Over budget	Under budget
Chip fabrication	(a) 95,440	(b) 98,170		(c) 2,730
Electronic assembly	84,810	85,910		1,100
Final assembly	135,700	134,610	1,090
	(d) 315,950	(e) 318,690	(f) 1,090	3,830

Plant	Actual	Budget	Over budget	Under budget
Eastern region	543,100	543,100
Central region	391,000	387,100	3,900
Western region	(g) 315,950	(h) 318,690		(i) 2,740
	(j) 1,250,050	(k) 1,248,890	(l) 3,900	2,740

(b) The budget for the Chip Fabrication Department indicates that the budget overrun was caused by a combination of budget overrun in factory wages, power and light, and maintenance that exceeded a budget surplus balance in materials.