Budgetary Performance for Cost Center Suwanee Company's costs were under budget by $59,700. The company is divided into North and South regions. The North Region’s costs were over budget by $4,200. Determine the amount that the South Region’s costs were over or under budget.

Answer

The South's budget was under budgeted by $63,900

Explanation

The sum of the north and south division equals that of the entire Company.

Company's budget = North  + South budget

Let us represent the value of the south budget by  y

(59,700) =    4,200  +   y  

y = -59,700 - 4200

y = 63,900

The South's budget was under budgeted by $63,900

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