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; 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; 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?

Quizplus · Accepted Answer

The Answer of 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; 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?

The Budget for Department 6 of Cardinal Company for the Current