Machine-hours Variable costs: Supplies Scrap Indirect materials Fixed costs: Wages and salaries Equipment depreciation Total cost Assembly Department Cost Report For the Month Ended March 31 Actual Results 15,000 $ 11,400 42,000 119,000 Planning Budget 20,000 $ 12,000 45,000 142,500 Variances $ 600 F 3,000 F 85,900 110,000 $ 368,300 23,500 F 80,000 110,000 5,900 U 0 $ 389,500 $ 21,200 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. 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? Actual Westmont Corporation Assembly Department Flexible Budget Performance Report For the Month Ended March 31 Flexible Budget Results Machine-hours (q) 15,000 Supplies $ 11,400 U Scrap 42,000 U Indirect materials 119,000 U Wages and salaries 85,900 U Equipment depreciation 110,000 None Total $368,300 U < Required 2 Required 4 > Planning Budget 20,000 F $ 12,000 F 45,000 F 142,500 None 80,000 None 110,000 F $389,500