Reference no: EM132687317
Problem - Budget performance report for a cost center
World-Tec Company sells electronics over the Internet. The International Division is organized as a cost center. The budget for the International Division for the month ended March 31, 2012, is as follows (in thousands):
Customer service salaries $325,500
Insurance and property taxes 68,250
Distribution salaries 519,250
Marketing salaries 612,125
Engineer salaries 498,125
Warehouse wages 348,800
Equipment depreciation 109,400
Total $2,481,450
During March, the costs incurred in the International Division were as follows:
Customer service salaries $416,700
Insurance and property taxes 66,200
Distribution salaries 514,000
Marketing salaries 685,500
Engineer salaries 488,100
Warehouse wages 334,900
Equipment depreciation 109,375
Total $2,614,775
Instructions -
1. Prepare a budget performance report for the director of the International Division for the month of March.
2. For which costs might the director be expected to request supplemental reports?