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Budget Performance Reports for Cost Centers

Partially completed budget performance reports for Delmar Company, a manufacturer of light duty motors, follow:

Delmar Company Budget Performance ReportVice President, Production For the Month Ended June 30
Plant	Actual		Budget		Over Budget		(Under) Budget
Eastern Region	$474,000		$474,000				$0
Central Region	337,900		341,300				(3,400)
Western Region	(g)		(h)		(i)
	$(j)		$(k)		$(l)		$(3,400)

Delmar Company Budget Performance ReportManager, Western Region Plant For the Month Ended June 30
Department	Actual		Budget		Over Budget		(Under) Budget
Chip Fabrication	$(a)		$(b)		$(c)
Electronic Assembly	76,030		75,050		980
Final Assembly	118,380		119,330				$(950)
	$(d)		$(e)		$(f)		$(950)

Delmar Company Budget Performance ReportSupervisor, Chip Fabrication For the Month Ended June 30
Cost	Actual		Budget		Over Budget		(Under) Budget
Factory wages	$27,910		$26,080		$1,830
Materials	70,010		70,500				$(490)
Power and light	4,830		4,060		770
Maintenance	7,520		6,870		650
	$110,270		$107,510		$3,250		$(490)

a. Complete the budget performance reports by determining the correct amounts for the lettered spaces (a-l) as marked above.

a. $	g. $
b. $	h. $
c. $	i. $
d. $	j. $
e. $	k. $
f. $	l. $

b. Complete the following memo to Randi Wilkes, vice president of production for Delmar Company, explaining the performance of the production division for June.

MEMO To: Randi Wilkes, Vice President of Production

The _______ plant has experienced a budget overrun. Its budget reveals that the __________ Department caused the majority of the budget overrun. The supervisor of the _________ Department should investigate the reasons for the budget overruns in ________

Options for the blanks:

• factory wages, materials, and maintenance
• materials, power and light, and maintenance
• factory wages, power and light, and maintenance

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