Assembly Department Cost Report For the Month Ended March 31 Actual Planning Results Budget Variances Machine-hours 25,000 30,000 Variable costs: Supplies $ 7,500 $ 8,100 $ 600 F Scrap 23, 800 25,500 1,700 F Indirect materials 72,200 84,000 11,800 F Fixed costs: Wages and salaries 70,300 67,000 3,300 U Equipment depreciation 97,000 97,000 0 Total cost $ 270,800 $ 281,600 $ 10,800 After receiving a copy of this cost report, the supervisor of the Assembly Department stated, "These reports are super. It makes m feel really good to see how well things are going in my department. I can't understand why those people upstairs complain so mue 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. Required: 1. The company's president is uneasy about the cost reports, identify at least two reasons. 2. What kind of reports should be used to give better insight into how well departmental supervisors are controlling costs? 3. Complete the new performance report for the quarter, based on Flexible Budget Performance approach 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 The company's president is uneasy about the cost reports, Identify at least two reasons. (Select "X" If the item is one of the reasons.) Cost reports are ineffective since budgeted costs at one level of activity are compared to actual costs at another level of activity Cost reports show whether foxed costs are controlled and do not show whether variable costs aro controlled Cost reports are effective since budgeted costs at one level of activity are compared to actual costs at another level of activity Cost reports show whether fixed costs and variable costs are controlled Required 1 Required 2 > Required: 1. The company's president is uneasy about the cost reports, identify at least two reasons. 2. What kind of reports should be used to give better insight into how well departmental supervisors are controlling costs? 3. Complete the new performance report for the quarter, based on Flexible Budget Performance approach. 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 (1.e, zero variance) Input all amounts as positive values.) Westmont Corporation Assembly Department Flexible Budget Performance Report For the Month Ended March 31 Actual Flexible Planning Results Budget Budget Machine-hours (9) 25,000 30,000 Supplies $ 7,500 $ 8.100 Scrap 23,800 25,500 Indirect materials 72,200 84.000 Wages and salaries 70,300 67.000 Equipment depreciation 97,000 97.000 Total $ 270,800 $ 281,600
