Answer:
Delmar Company
Delmar Company
Budget Performance Report—Vice President, Production
For the Month Ended June 30
Plant Actual Budget Over Budget (Under) Budget
Eastern Region $4,200,000 $4,250,000 $(50,000)
Central Region 6,175,000 6,200,000 (25,000)
Western Region 8,515,000 8,200,000 $375,000
$18,890,000 $18,650,000 $375,000 $(75,000)
Delmar Company
Budget Performance Report—Manager, Western Region Plant
For the Month Ended June 30
Department Actual Budget Over Budget (Under) Budget
Chip Fabrication $4,300,000 $4,000,000 $300,000
Electronic Assembly 2,575,000 2,500,000 75,000
Final Assembly 1,640,000 1,700,000 $(60,000)
$8,515,000 $8,200,000 $375,000 $(60,000)
b. Memo to Randi Wilkes, Vice President
To: Vice President, Production
From: FC
Subject: Budget Performance Report—For the Month Ended June 30
Date: July 3, 2021
The above-mentioned subject refers.
The production division incurred $315,000 more costs than budgeted. The extra costs are reflected in the increasing cost of producing light duty motors in the Western Region. The overall increase is caused by the regional differences in Chip fabrication and Electronic Assembly.
There is a need to review production activities with these two production processes with a view to reducing costs.
Regards,
Explanation:
a) Data and Calculations:
Delmar Company
Budget Performance Report—Vice President, Production
For the Month Ended June 30
Plant Actual Budget Over Budget (Under) Budget
Eastern Region $4,200,000 $4,250,000 $(50,000)
Central Region 6,175,000 6,200,000 (25,000)
Western Region (g) (h) $(i)
$(j) $(k) $(l) $(75,000)
Delmar Company
Budget Performance Report—Manager, Western Region Plant
For the Month Ended June 30
Department Actual Budget Over Budget (Under) Budget
Chip Fabrication $(a) $(b) $(c)
Electronic Assembly 2,575,000 2,500,000 75,000
Final Assembly 1,640,000 1,700,000 $(60,000)
$(d) $(e) $(f) $(60,000)
Delmar Company
Budget Performance Report—Supervisor, Chip Fabrication
For the Month Ended June 30
Cost Actual Budget Over Budget (Under) Budget
Factory wages $1,450,000 $1,200,000 $250,000
Materials 1,575,000 1,600,000 $(25,000)
Power and light 945,000 900,000 45,000
Maintenance 330,000 300,000 30,000
$4,300,000 $4,000,000 $325,000 $(25,000)
a. = $4,300,000
b. = $4,000,000
c. = $300,000 ($325,000 - $25,000)
d. = $8,515,000 ($4,300,000 + 2,575,000 + 1,640,000)
e. = $8,200,000 ($4,000,000 + 2,500,000 + 1,700,000)
f. = $375,000 ($300,000 + 75,000)
g. = $8,515,000
h. = $8,200,000
i. = $375,000
j. = $18,890,000 ($4,200,000 + 6,175,000 + 8,515,000)
k. = $18,650,000 ($4,250,000 + 6,200,000 + 8,200,000)
l. = $375,000
