Question

The budget for Department 6 of Cardinal Company for the current month ending March 31 is as follows:

Materials $208,000
Factory wages 265,000
Supervisory salaries 67,800
Depreciation of plant and equipment 35,000
Power and light 22,500
Insurance and property taxes 15,500
Maintenance 9,700

During March, the costs incurred in Department 6 of Cardinal Company were materials, $204,000; factory wages, $285,000; supervisory salaries, $63,600; depreciation of plant and equipment, $35,000; power and light, $21,360; insurance and property taxes, $14,400; and maintenance, $9,456.

Required:
Prepare a budget performance report for the supervisor of Department 6 of Cardinal Company for the month of March.

Answer 1

Answer:

Cardinal Company

Department 6

Budget Performance Report for the month of March

                                                 Budget        Actual         Variance

Materials                                $208,000     $204,000     $4,000  F

Factory wages                         265,000       285,000     20,000  U

Supervisory salaries                  67,800          63,600       4,200  F

Depreciation of plant and

 equipment                              35,000          35,000        0         None

Power and light                        22,500           21,360         1,140  F

Insurance and property taxes 15,500            14,400         1,100  F

Maintenance                              9,700             9,456           244 F

Total Expenses                   $623,500       $632,816     ($9,316) U

Explanation:

a) Data and Calculations:

Budget for the month of March:

Materials                                $208,000

Factory wages                         265,000

Supervisory salaries                  67,800

Depreciation of plant and

 equipment                              35,000

Power and light                        22,500

Insurance and property taxes 15,500

Maintenance                              9,700

Total Expenses                   $623,500

Actual Costs Incurred during March:

Materials                                $204,000

Factory wages                         285,000

Supervisory salaries                  63,600

Depreciation of plant and

 equipment                               35,000

Power and light                          21,360

Insurance and property taxes   14,400

Maintenance                               9,456

Total Expenses                     $632,816