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1) Several years ago, Westmont Corporation developed a comprehensive budgeting system for planning and control purposes. While departmental supervisors have been happy with the system,

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1) Several years ago, Westmont Corporation developed a comprehensive budgeting system for planning and control purposes. While departmental supervisors have been happy with the system, the factory manager has expressed considerable dissatisfaction with the information being generated by the system. A report for the company's Assembly Department for the month of March follows: Assembly Department Cost Report For the Month Ended March 31 Actual ResultsPlanning Budget Variances Machine-hours 35,000 40,000 Variable costs: Supplies 29.700 S 32,000 $2,300 F Scrap 19,500 20.000 500 F Indirect materials 51,800 56,000 4,200 F Fixed costs: Wages and salaries 79,200 80,000 800 F Equipment depreciation 60,000 60,000 Total cost 240,200 248,000 $7,800 F After receiving a copy of this cost report, the supervisor of the Assembly Department stated, "These reports are super. It makes me feel really good to see how well things are going in my department. I can't understand why those people upstairs complain so much about the reports." For the last several years, the company's marketing department has chronically failed to meet the sales goals expressed in the company's monthly budgets

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