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6 10 po 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 Tor the Month tended March 31 Actual Planning Renults udget Variances Machine-hours 25,000 30,000 Print Terences Variable costs Supplies serap Indirect materials Tixed co Wages and alarios quipment depreciation Totalcoat 55,600 37.2001 600 19.600 21.000 1.400 70,500 3.100 66.700 64.000 2.700 94,000 34.000 $240,300 0256,700 18.400 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 Required 1. The company's president is uneasy about the cost reports, Identity 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 Wore costs well controlled in March? Complete this question by entering your answers in the tabs below. 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? BOOK Complete this question by entering your answers in the tabs below. Print References Required 1 Required 2 Required 3 Required 4 The company's president is uneasy about the cost reports, Identify at least two reasons (Select *xif the item is one of the 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 are 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 Route Required 2 > 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 variance). Input all amounts as positive values.) calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (.e, zero Westmont Corporation Assembly Department Flexible Budget Performance Report For the Month Ended March 31 Flexible Planning Budget Budget Machine-hours (9) 25,000 30,000 Actual Results Supplies Scrap Indirect materials Wages and salaries Equipment depreciation Total s 6,600 19.600 61,400 66,700 14,000 $ 248,300 $ 7,200 21,000 70,500 64,000 94,000 S 256.700