A report for a company's Assembly Department for the month of March follows. The operating manager in charge is not satisfied with the information generated by the system. On the other hand, department supervisors are satisfied. In this cost report, the company measures its activity in terms of machine hours. Assembly Department Cost Report For the Month Ended March 31 Actual Planning Results Budget 15,000 20,000 Variances Machine-hours $ Variable costs: Supplies Scrap Indirect materials Fixed costs: Wages and salaries Equipment depreciation 9,300 $ 9,900 $ 600 F 32,200 34,500 2,300 F 93,800 111,000 17,200 F 77,500 73,000 4,500 V 103,000 103,000 $ 315,800 $ 331,400 $15,600 F Total cost The company has failed to meet the sales goals stated in the company's monthly budgets for the last several years. Required: 1. Identify at least two reasons why the operating manager is not comfortable with the report. 2. What kind of reports should be used to give better insight into how well departmental supervisors are controlling costs? 3. Using a Flexible Budget Performance approach, complete the new performance report for the period ending March 31. 4. Were costs well controlled in March? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Complete the new performance report for the quarter, based on Flexible Budget Performance approach. (Do not round your intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Assembly Department Flexible Budget Performance Report For the Month Ended March 31 Flexible Budget Actual Results 15,000 Planning Budget 20,000 Machine-hours (9) $ 9,300 32.200 93,800 Supplies Scrap Indirect materials Wages and salaries Equipment depreciation Total $ 9.900 34,500 111,000 73.000 103,000 $ 331,400 77,500 103,000 $ 315,800