Question

Sneed Industries Company sells vehicle parts to manufacturers of heavy construction equipment. The Crane Division is organized as a cost center. The budget for the Crane Division for the month ended August 31, 20Y6, is as follows (in thousands):

Customer service salaries	$ 437,500
Insurance and property taxes	87,500
Distribution salaries	831,250
Marketing salaries	525,000
Engineer salaries	1,295,000
Warehouse wages	490,000
Equipment depreciation	271,250
Total	$ 3,937,500

During August, the costs incurred in the Crane Division were as follows:

Customer service salaries	$ 607,200
Insurance and property taxes	81,015
Distribution salaries	774,675
Marketing salaries	612,150
Engineer salaries	1,218,113
Warehouse wages	453,585
Equipment depreciation	255,750
Total	$ 4,002,488

Required:

1. Prepare a budget performance report for the director of the Crane Division for the month of August. Enter amounts in thousands (same format as the data above).

If an amount box does not require an entry, leave it blank.

Sneed Industries Company
Budget Performance Report-Director, Crane Division
For the Month Ended August 31, 20Y6
	Budget	Actual	Over Budget	(Under) Budget
Customer service salaries	$	$	$	$
Insurance and property taxes
Distribution salaries
Marketing salaries
Engineer salaries
Warehouse wages
Equipment depreciation
Total	$	$	$	$

Answer 1