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?

Question

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?

Jordy Maugeri · Accepted Answer

Final Answer :   b.The factory wages, supervisory salaries, power and light, and insurance and property taxes should be examined by the supervisor.

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