Asked by Tabatha Magnuson on Jun 20, 2024
Verified
The budget for Department 6 of Cardinal Company for the current month ending March 31 is as follows: 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.
a.Prepare a budget performance report for the supervisor of Department 6 of Cardinal Company for the month of March.
b.Are there any significant variances (5% or greater) of the budgeted amounts that should be examined by the supervisor?
Budget Performance Report
A financial report comparing the actual financial activity to the forecasted or budgeted financial performance.
Variances
Differences between planned or expected financial performance and the actual performance.
Budgeted Amounts
Projected financial allocations set for a specific time period, intended to guide spending and investment decisions.
- Generate reports on budget execution and scrutinize discrepancies.
Verified Answer
Learning Objectives
- Generate reports on budget execution and scrutinize discrepancies.
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