The Budget for Department 6 of Cardinal Company for the Current

question 33

Essay

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?

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Definitions:

Payment

The act of giving money or other compensation to settle a transaction.

Terms

Conditions and stipulations that define an agreement or contract.

Discounts

Reductions applied to the selling price of goods or services for promotions, bulk purchases, or other reasons.

Sold

Refers to the act of exchanging a product or service for money or other compensation; a completed transaction.