Question

Vinton Company’s costs were under budget by $36,000. The company is divided into North and South regions. The North Region’s costs were over budget by $45,000. Determine the amount that the South Region's costs were over or under budget.

Answer 1

Answer: ($81,000)

Explanation:

From the information given, we are informed that Vinton Company is divided into North and South regions. We are further informed that the company's costs were under budget by $36,000 while the North Region’s costs were over budget by $45,000.

The amount that the South Region's costs were over or under budget will then be:

= ($36,000) - $45,000

= -$81,000

Therefore, South Region's costs were under budget by $81,000