Reference no: EM132955718

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

Materials$208,000

Factory wages265,000

Supervisory salaries67,800

Depreciation of plant and equipment35,000

Power and light22,500

Insurance and property taxes15,500

Maintenance9,700

?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; maintenance, $9,456.

Problem (a) Prepare a budget performance report for the supervisor of Department 6 of Cardinal Company for the month of March.

Problem (b) Are there any significant variances (5% or greater) of the budgeted amounts that should be examined by the supervisor?