Question

B e rformance Reports for Counters competed bunga performance reports for Grand Company. A mandauer auty The En Budget Performance Report Vien President, Production For the Month Ende November 30 Actu Over Bud $390,900 $390,900 281.400 278,600 Budget • a bud over Cara Region Western Region budget revenire Op Fabrication Electronic - Garland Company Budget Performance Report Manager, Western Region Plant For the Month Ended November 30 Department Budget Actual Under Budget Chio Fabrication Beronic Assembly 91,820 93,010 147,830 500 ed the Nobot the budget overrun T ape - Chip Fabrication • Electronic Kesently • Final vigate the res for the budget o n in factory was, material, and maintenance materials, and opt, and maintenance rectory in power and light, and maintenance 146,650 rand Company Budget Performance Report-Supervisor, Chip Fabrication For the Month Ended November 30 Burget Actual Over Budget $20,160 $21.570 67,670 1.430 Complete the budget performance reports by termining the correct announts for the lettered complet Comerye o nemote Cassandra Reid, Wicepresident of production for Garland n g the performance of the production on for November

Answer 1

1
a.		Budget performance report-Manager,Western region plant
	Department							Budget	Actual	Over budget	Under budget
	Chip fabrication							99780	102180	2400
	(Total of budgeted performance reprt-Supervisor-Chip fabrication)							(a)	(b)	c)
	Electronic assembly							91820	93010	1190
	Final assembly							147830	146650		-1180
								339430	341840	3590	-1180
								(d)	e)	f)
		Budget performance report-Vice president,Production
	Plant							Budget	Actual	Over budget	Under budget
	Eastern region							390900	390900		0
	Central region							281400	278600		-2800
	Western region							339430	341840	2410
	(Total of budgeted performance report-Manager-Western region plant)							(g)	(h)	(i)
								1011730	1011340	2410	-2800
								(j)	(k)	(l)
b.	MEMO
	To:
	The western region plant has experienced the budget overrun.It's 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 factory wages,power and light and maintenance
2
a.					Residential	Commercial	Government contract	Total
	Number of payroll checks:
	Weekly payroll				210	70	75	355
	Monthly payroll				36	47	34	117
	Total				246	117	109	472
	Number of purchase requisitions per year				2000	1400	1300	4700
b.	Service department charge rates:
	Payroll department		Service department charge rates=Department expenses/Total payroll=79456/472=$ 168.34 per payroll check
	Purchasing department		Service department charge rates=Department expenses/Total number of purchase requisitions per year=27730/4700=$ 5.9 per purchase requisition
	Cost allocation=Actual usage of allocation base by the department*Service department charge rates
					Residential	Commercial	Government contract	Total
	Service department charges:
	Payroll department				41411.64	19695.78	18349.06	79456.48
					(246*168.34)	(117*168.34)	(109*168.34)
	Purchasing department				11800	8260	7670	27730
					(2000*5.9)	(1400*5.9)	(1300*5.9)
	Total				53211.64	27955.78	26019.06	107186.5
c.	Residential's service department charge is more than other two divisions because residential is a large user of service department services.
	Residential has many employees on a weekly payroll,which translates into a large number of check-issuing transactions