The Furnishings Company sells furnishings and fixtures over the Internet. The International Division is organized as a cost center. The budget for the International Division for the month ended October 31, 2008, is as follows (in millions):
|
Customer service salaries |
$ 119 |
|
Insurance and property taxes |
32 |
|
Distribution salaries |
238 |
|
Marketing salaries |
336 |
|
Engineer salaries |
217 |
|
Warehouse wages |
147 |
|
Equipment depreciation |
45 |
|
Total |
$1,134 |
During October, the costs incurred in the International Division were as follows:
|
Customer service salaries |
$ 153 |
|
Insurance and property taxes |
31 |
|
Distribution salaries |
235 |
|
Marketing salaries |
377 |
|
Engineer salaries |
213 |
|
Warehouse wages |
141 |
|
Equipment depreciation |
45 |
|
Total |
$1,195 |
Instructions
1. Prepare a budget performance report for the director of the International Division for the month of October.
2. For which costs might the director be expected to request supplemental reports?