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Valotic Tech Inc. sells electronics over the Internet. The Consumer Products Div

ID: 2531364 • 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 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

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.

Valotic Tech Inc.

Budget Performance Report—Director, Consumer Products Division

For the Month Ended January 31

1

Budget

Actual

Over Budget

Under Budget

2

Customer service salaries

3

Insurance and property taxes

4

Distribution salaries

5

Marketing salaries

6

Engineer salaries

7

Warehouse wages

8

Equipment depreciation

9

Total


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

All salaries: customer service, distribution, marketing, and engineer.

Customer service and marketing salaries as well as warehouse wages.

Marketing salaries.

Customer service salaries.

Warehouse wages and engineer salaries.

Customer service and marketing salaries.

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

Explanation / Answer

Valotic Tech Inc. Budget Performance Report—Director, Consumer Products Division For the Month Ended January 31 Budget Budget Actual Over Budget Under Budget Customer service salaries $    5,46,840.00 $    6,02,350.00 $     55,510.00 Insurance and property taxes $    1,14,660.00 $    1,10,240.00 $        4,420.00 Distribution salaries $    8,72,340.00 $    8,61,200.00 $      11,140.00 Marketing salaries $ 10,28,370.00 $ 10,85,230.00 $     56,860.00 Engineer salaries $    8,36,850.00 $    8,20,008.00 $      16,842.00 Warehouse wages $    5,86,110.00 $    5,62,632.00 $      23,478.00 Equipment depreciation $    1,83,792.00 $    1,83,610.00 $            182.00 Total $ 41,68,962.00 $ 42,25,270.00 $ 1,12,370.00 $      56,062.00 Hence there is no additional data in the question, second part can only be answered like the following All salaries: customer service, distribution, marketing, and engineer. Budget Budget Actual Over Budget Under Budget Customer service salaries $    5,46,840.00 $    6,02,350.00 $     55,510.00 Distribution salaries $    8,72,340.00 $    8,61,200.00 $      11,140.00 Marketing salaries $ 10,28,370.00 $ 10,85,230.00 $     56,860.00 Engineer salaries $    8,36,850.00 $    8,20,008.00 $      16,842.00 Total $ 32,84,400.00 $ 33,68,788.00 $ 1,12,370.00 $      27,982.00 Customer service and marketing salaries as well as warehouse wages Budget Budget Actual Over Budget Under Budget Customer service salaries $    5,46,840.00 $    6,02,350.00 $     55,510.00 Marketing salaries $ 10,28,370.00 $ 10,85,230.00 $     56,860.00 Warehouse wages $    5,86,110.00 $    5,62,632.00 $      23,478.00 Total $ 21,61,320.00 $ 22,50,212.00 $ 1,12,370.00 $      23,478.00 Marketing salaries. Budget Budget Actual Over Budget Under Budget Marketing salaries $ 10,28,370.00 $ 10,85,230.00 $     56,860.00 Total $ 10,28,370.00 $ 10,85,230.00 $     56,860.00 $                     -   Customer service salaries. Budget Budget Actual Over Budget Under Budget Customer service salaries $    5,46,840.00 $    6,02,350.00 $     55,510.00 Total $    5,46,840.00 $    6,02,350.00 $     55,510.00 $                     -   Warehouse wages and engineer salaries. Budget Actual Over Budget Under Budget Engineer salaries $    8,36,850.00 $    8,20,008.00 $      16,842.00 Warehouse wages $    5,86,110.00 $    5,62,632.00 $      23,478.00 Total $ 14,22,960.00 $ 13,82,640.00 $                    -   $      40,320.00 Customer service and marketing salaries. Budget Budget Actual Over Budget Under Budget Customer service salaries $    5,46,840.00 $    6,02,350.00 $     55,510.00 Marketing salaries $ 10,28,370.00 $ 10,85,230.00 $     56,860.00 Total $ 15,75,210.00 $ 16,87,580.00 $ 1,12,370.00 $                     -