Reference no: EM133031623

Question - The budget for Department 6 of Cardinal Company for the current month ending March 31 is as follows:

Materials $208,000

Factory wages 265,000

Supervisory salaries 67,800

Depreciation of plant and equipment 35,000

Power and light 22,500

Insurance and property taxes 15,500

Maintenance 9,700

During March, the costs incurred in Department 6 of Cardinal Company were materials, $204,000; factory wages, $285,000; supervisory salaries, $63,600; depreciation of plant and equipment, $35,000; power and light, $21,360; insurance and property taxes, $14,400; maintenance, $9,456.

Required -

(a) Prepare a budget performance report for the supervisor of Department 6 of Cardinal Company for the month of March.

(b) Are there any significant variances (5% or greater) of the budgeted amounts that should be examined by the supervisor?