Paper Details
Amoruso Parts Company sells vehicle parts to automotive companies. The Truck Division is organized as a cost center. The budget for the Truck Division for the month ended October 31, 2010, is as follows (in thousands):
Customer service salaries $ 260,450
Insurance and property taxes 54,600
Distribution salaries 415,400
Marketing salaries 489,700
Engineer salaries 398,500
Warehouse wages 279,100
Equipment depreciation 87,500
Total $1,985,250
During October, the costs incurred in the Truck Division were as follows:
Customer service salaries $ 333,370
Insurance and property taxes 52,960
Distribution salaries 411,250
Marketing salaries 548,460
Engineer salaries 390,530
Warehouse wages 267,930
Equipment depreciation 87,500
Total $2,092,000
Instructions
1. Prepare a budget performance report for the director of the Truck Division for the month of October.
2. For which costs might the director be expected to request supplemental reports?
