Needing help with step 3.
Module 5 Homework i Saved Help Help Save & Exit Submit Check my work 7 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: : 25 points Assembly Department Cost Report For the Month Ended March 31 Actual Planning Results Budget 25,880 38,888 eBook Variances Machine-hours Print $ 8,180 $ 8,780 26,680 28,500 79,40e 93,00 $ 680 F 1,900 F 13,680 F Variable costs: Supplies Scrap Indirect materials Fixed costs: Wages and salaries Equipment depreciation Total cost References 72,780 69,000 3,700 u 99,880 99,000 $285,880 $ 298,280 $12,480 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? Complete this question by entering your answers in the tabs below. 7 Planning Complete this question by entering your answers in the tabs below. 25 points 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.) Westmont Corporation Assembly Department Flexible Budget Performance Report For the Month Ended March 31 References Actual Revenue and Spending Flexible Results Variances Budget Activity Variances Budget Machine-hours (a) 25,000 25,000 30,000 eBook Print Recent IU S S Supplies Scrap F - F U Indirect materials Wages and salaries Equipment depreciation Total S 8.100 28,600 79,400 72,700 99,000 $ 285,800 7,250 23.750 77,500 69,000 99,000 276,500 8,700 28,500 93,000 69,000 99.000 U None None None 0 S $ $ 298,200
