Please help with requirement 3 and explain how get the numbers! :)
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. erated by the system with the system, the factor budgeting system for A report for the company's Assembly Department for the month of March follows: Assembly Department Cost Report For the Month Ended March 31 Actual Planning Results Budget 25.000 30.000 Variance Machine-hours $ 8.400 $ 9.000 $ 600 F 28.000 30.0002.000 83,00097,500 14.500 F Variable costs: Supplies Scrap Indirect materials Fixed costs Wages and salaries Equipment depreciation Total cost 73,900 70,000 3,900 U 100,000 100,000 $293,300 $306,500 $13,200 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: 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. Required 1 Required 2 Required 3 Required 4 prepare a new performance report for the quarter, (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.) Want nn Required 1 Required 2 Required 3 Required 4 prepare a new performance report for the quarter, (Do not round your intermediate calculations. Indicate the effect of each selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (1.e., zero variance). Input all amounts as positive Westmont Corporation Assembly Department Flexible Budget Perforthance Report For the Month Ended March 31 Flexible Budget 25,000 Actual Results 25,000 Planning Budget 30,000 Machine-hours (a) $ $ Supplies Scrap Indirect materials Wages and salaries Equipment depreciation 8,400 28,000 83,000 73,900 100,000 293,300 900 U 3,000 1,750U U 15,567 16,667 U 37,883 U 7,500 $ 25,000 81,250 8,333 83,333 255,417| $ 1,500F 5,000 F 16,250 F 11,667 F 16,667 F 51,083 $ 9,000 30,000 97,500 70,000 100,000 $ 306,500 5 Total $ $ S Required 2 Required 4 >
