Financial and Managerial Accounting: P23-1A Amoruso Parts Company sells vehicle parts to automotive

Financial and Managerial Accounting

P23-1A Budget Performance Report for a Cost Center
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?
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