Valotic Tech Inc. sells electronics over the Internet. The Consumer Products Div
ID: 2469235 • Letter: V
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 for the month ended January 31, 2016, 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?
Explanation / Answer
Answer
Answer 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.
Budget Performance Report (Consumer Products Division) January 2016
Figures in $
Particulars
Budget
Actual
Increase/(decrease) in Actual expenditure compared to budget
Customer service Salaries
546840
602350
55510
Insurance & Property Taxes
114660
110240
-4420
Distribution Salaries
872340
861200
-11140
Marketing Salaries
1028370
1085230
56860
Engineers salaries
836850
820008
-16842
Warehouse wages
586110
562632
-23478
Equipment Depreciation
183792
183610
-182
Total
4168962
4225270
56308
Answer 2
For which costs might the director be expected to request supplemental reports?
Answer : The director might be expected to request supplemental reports for Customer service Salaries and Marketing Salaries for which actual costs is increased compared to budgeted costs.
Budget Performance Report (Consumer Products Division) January 2016
Figures in $
Particulars
Budget
Actual
Increase/(decrease) in Actual expenditure compared to budget
Customer service Salaries
546840
602350
55510
Insurance & Property Taxes
114660
110240
-4420
Distribution Salaries
872340
861200
-11140
Marketing Salaries
1028370
1085230
56860
Engineers salaries
836850
820008
-16842
Warehouse wages
586110
562632
-23478
Equipment Depreciation
183792
183610
-182
Total
4168962
4225270
56308
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