Good afternoon,

Thank you for taking the time to assist me today. Finance and math in general is something I always want to double-check my work with, so with that in mind I'm hoping that you can guide me through the process of solving this exercise the right way to make sure I'm following the process properly, thank you.

The question is "Problem 10-21 Critiquing a Variance Report; Preparing a Performance Report" from "Managerial Accounting, 13th Edition", which is one of My Textbook Solutions.

Problem 10-21 Critiquing a Variance Report; Preparing a Performance Report

Several years ago, Westmont Corporation developed a comprehensive budgeting system for profit 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 typical cost report for a recent period follows:

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 and would like you to evaluate their usefulness to the company.

2. What changes, if any, should be made in the reports to give better insight into how well department supervisors are controlling costs?

3. Prepare a new performance report for the quarter, incorporating any changes you suggested in question (2) above.

4. How well were costs controlled in the Assembly Department in March?

N Microsoft Excel File Edit View Insert Format Tools Data Window Help Adobe PDF - X ABC CI100% Arial 12 BUD - A. +.0 .00 ,00 + .0 > H32 A B C Assembly Department Cost Report For the Month Ended March 31 2 3 4 Planning Budget 40,000 Actual 5 Results Variances 6 Machine-hours 35,000 7 8 Variable costs: Supplies 10 Scrap Indirect materials 12 Fixed costs 13 Wages and salaries 14 Equipment depreciation 15 Total cost $ 32,000 $ 29,700 20,000 56,000 $ 2,300 F 500 F 4,200 F 19,500 51,800 11 79,200 60,000 $ 240,200 800 F 80,000 60,000 $248,000 $7.800 F 16 Sheet1 Sheet2 Sheet3/