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Budget performance report for a cost center

GHT Tech Inc. sells electronics over the Internet. The Consumer Products Division is organized as a cost center. The budget for the Consumer Products Division for the month ended January 31 is as follows:

Customer service salaries	$546,840
Insurance and property taxes	114,660
Distribution salaries	872,340
Marketing salaries	1,028,370
Engineer salaries	836,850
Warehouse wages	586,110
Equipment depreciation	183,792
Total	$4,168,962

During January, the costs incurred in the Consumer Products Division were as follows:

Customer service salaries	$602,350
Insurance and property taxes	110,240
Distribution salaries	861,200
Marketing salaries	1,085,230
Engineer salaries	820,008
Warehouse wages	562,632
Equipment depreciation	183,610
Total	$4,225,270

Required:

1. Prepare a budget performance report for the director of the Consumer Products Division for the month of January. If an amount box does not require an entry, leave it blank.

GHT Tech Inc.
Budget Performance ReportDirector, Consumer Products Division
For the Month Ended January 31
	Actual	Budget	Over Budget	Under Budget
Customer service salaries	$fill in the blank	$fill in the blank	$fill in the blank	$fill in the blank
Insurance and property taxes	fill in the blank	fill in the blank	fill in the blank	fill in the blank
Distribution salaries	fill in the blank	fill in the blank 8b508e06cf9804a_10	fill in the blank 8b508e06cf9804a_11	fill in the blank 8b508e06cf9804a_12
Marketing salaries	fill in the blank	fill in the blank	fill in the blank	fill in the blank
Engineer salaries	fill in the blank	fill in the blank	fill in the blank	fill in the blank
Warehouse wages	fill in the blank	fill in the blank	fill in the blank	fill in the blank
Equipment depreciation	fill in the blank	fill in the blank	fill in the blank	fill in the blank
Total	$fill in the blank	$fill in the blank	$fill in the blank	$fill in the blank

What is the profit margin of each region? Round percentages to the nearest whole number.

Division	Profit Margin
East Region	fill in the blank
West Region	fill in the blank
Central Region	fill in the blank

2. For which costs might the director be expected to request supplemental reports?

1. Customer service salaries and marketing salaries as they are significantly over budget.

2. Customer service salaries, warehouse wages and marketing salaries as they have significantly changed.

3. Engineering salaries and warehouse wages as they are significantly under budget.

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