The Eastern District of Adelson Inc. is organized as a cost center. The budget for the Eastern District of Adelson Inc. for the month ended December 31 is as follows: Sales salaries $819,840 System administration salaries 448,152 Customer service salaries 152,600 Billing salaries 98,760 Maintenance 271,104 Depreciation of plant and equipment 92,232 Insurance and property taxes 41,280 Total $1,923,968 During December, the costs incurred in the Eastern District were as follows: Sales salaries $818,880 System administration salaries 447,720 Customer service salaries 183,120 Billing salaries 98,100 Maintenance 273,000 Depreciation of plant and equipment 92,232 Insurance and property taxes 41,400 Total $1,954,452 Required: 1. Prepare a budget performance report for the manager of the Eastern District of Adelson for the month of December. If an amount box does not require an entry, leave it blank. Adelson Inc. Budget Performance Report-Manager, Eastern District For the Month Ended December 31 Actual Budget Over Budget Under Budget Sales salaries $ $ $ $ System administration salaries Customer service salaries Billing salaries Maintenance Depreciation of plant and equipment Insurance and property taxes Total $ $ $ $ 2. For which costs might the manager be expected to request supplemental reports? Customer service salaries. Customer service salaries and maintenance. Customer service and sales salaries as well as maintenance. Maintenance.
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
The Eastern District of Adelson Inc. is organized as a cost center. The budget for the Eastern District of Adelson Inc. for the month ended December 31 is as follows:
| Sales salaries | $819,840 |
| System administration salaries | 448,152 |
| Customer service salaries | 152,600 |
| Billing salaries | 98,760 |
| Maintenance | 271,104 |
| Depreciation of plant and equipment | 92,232 |
| Insurance and property taxes | 41,280 |
| Total | $1,923,968 |
During December, the costs incurred in the Eastern District were as follows:
| Sales salaries | $818,880 |
| System administration salaries | 447,720 |
| Customer service salaries | 183,120 |
| Billing salaries | 98,100 |
| Maintenance | 273,000 |
| Depreciation of plant and equipment | 92,232 |
| Insurance and property taxes | 41,400 |
| Total | $1,954,452 |
Required:
1. Prepare a budget performance report for the manager of the Eastern District of Adelson for the month of December. If an amount box does not require an entry, leave it blank.
| Adelson Inc. | ||||
| Budget Performance Report-Manager, Eastern District | ||||
| For the Month Ended December 31 | ||||
| Actual | Budget | Over Budget | Under Budget | |
| Sales salaries | $ | $ | $ | $ |
| System administration salaries | ||||
| Customer service salaries | ||||
| Billing salaries | ||||
| Maintenance | ||||
| Depreciation of plant and equipment | ||||
| Insurance and property taxes | ||||
| Total | $ | $ | $ | $ |
2. For which costs might the manager be expected to request supplemental reports?
- Customer service salaries.
- Customer service salaries and maintenance.
- Customer service and sales salaries as well as maintenance.
- Maintenance.
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