Budget Performance Report for a Cost Center
Amoruso Parts Company sells vehicle parts to automotive companies. The Truck Division is organized as a cost center. The budget for the Truck Division for the month ended October 31, 2010, is as follows (in thousands):
|
Customer service salaries |
260,450 |
|
Insurance and property taxes |
54,600 |
|
Distribution salaries |
415,400 |
|
Marketing salaries |
489,700 |
|
Engineer salaries |
398,500 |
|
Warehouse wages |
279,100 |
|
Equipment depreciation |
87,500 |
|
Total |
1,985,250 |
During October, the costs incurred in the Truck Division were as follows:
|
Customer service salaries |
333,370 |
|
Insurance and property taxes |
52,960 |
|
Distribution salaries |
411,250 |
|
Marketing salaries |
548,460 |
|
Engineer salaries |
390,530 |
|
Warehouse wages |
267,930 |
|
Equipment depreciation |
87,500 |
|
Total |
2,092,000 |
Instructions
1. Prepare a budget performance report for the director of the Truck Division for the month of October.
2. For which costs might the director be expected to request supplemental reports?