The Budget for Department 5 of Plant M for the Current

Essay

The budget for Department 5 of Plant M for the current month ending March 31 is as follows: $\begin{array}{lr}\text { Materials } & \$ 206,000 \\\text { Factory wages } & 265,000 \\\text { Supervisory salaries } & 67,800 \\\text { Depreciation of plant and equipment } & 35,000\\\text { Power and light } & 22,500 \\\text { Insurance and property taxes } & 15,500 \\\text { Maintenance } & 9,700\end{array}$ ?
During March, the costs incurred in Department 5 of Plant M 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.
(a)Prepare a budget performance report for the supervisor of Department 5 of Plant M for the month of March.
(b)Are there any significant variances (greater than 5%) of the budgeted amounts that should be examined by the supervisor?