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	Budget		Actual		Over Budget		Under Budget
Eastern Region	$360,600		$360,600				$0
Central Region	259,600		257,000				(2,600)
Western Region	(g)		(h)		(i)
	$(j)		$(k)		$(l)		$(2,600)

Garland Company Budget Performance Report—Manager, Western Region Plant For the Month Ended November 30
Department	Budget		Actual		Over Budget		Under Budget
Chip Fabrication	$(a)		$(b)		$(c)
Electronic Assembly	68,620		69,510		890
Final Assembly	109,790		108,910				$(880)
	$(d)		$(e)		$(f)		$(880)

Garland Company Budget Performance Report—Supervisor, Chip Fabrication For the Month Ended November 30
Cost	Budget		Actual		Over Budget		Under Budget
Factory wages	$22,430		$24,000		$1,570
Materials	62,140		61,710				$(430)
Power and light	3,570		4,250		680
Maintenance	8,680		9,500		820
	$96,820		$99,460		$3,070		$(430)

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. Complete the following memo to Cassandra Reid, vice president of production for Garland Company, explaining the performance of the production division for November.

MEMO
To: Cassandra Reid, Vice President of Production

The   plant has experienced a budget overrun. Its budget reveals that the   Department caused the majority of the budget overrun. The supervisor of the   Department should investigate the reasons for the budget overruns in  .

Answer 1

Garland Company Budgeted Perfromance Report Manager, Western Region Plant For the Month Ended November 30 Budget Over Budget Under Budget Actual Department Chip fabrication Electronic Assembly Final Assembly 96,820 99,460 2,640 68,620 69,510 890 (880) 109,790 108,910 (880) 3,530 275,230 277,880 Garland Company Budgeted Perfromance Report Vice President, Production For the Month Ended November 30 Actual Under Budget Budget Over Budget Department Eastern Region 360,600 360,600 Central Region Western Region 259,600 257,000 (2,600) 275,230 2,650 277,880 (2,600) 895,430 895,480 2,650 96,820 g 99,460 h 2,640 i 275,230 j 277,880 k 275,230 а. b. 277,880 2,650 С. d. 895,430 895,480 e. f. 3,530 2,650

Note: Chip fabrication figures got from the total of Budgeted performance report of Supervisor, Chip Fabrication Budgeted 96,820 Actual 99,460 Over Budget (99,460-96,820) 2,640 Western Region figure got from the total of budgeted performance report-Manager, Western Region plant Budgeted 275,230 Actual 277,880 Over Budget (277,880- 275,230) 2,650 b) To: Cassandra Reid, Vice President of Production The Western Region plant has experienced a budget overrun. Its budget reveals that the chip fabrication Department caused the majority of the budget overrun. The supervisor of the chip fabrication Department should investigate the reasons for the budget overruns in