PROBLEM 9-25 Critiquing a Variance Report; Preparing a Performance Report S L09-1, L09-2, 4 L09-3, LO9 4, LO9-6 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 For the Month Ended March 31 Actual Planning Variances Results Budget Machine-hours 35,000 40.000 Variable costs: Supplies $/29/700 $ 32.000 $2,300 F Scrap 19.500 20.000 500 F Indirect materials 1200 E Wages and salaries 19.200 80,000 800 F Equipment depreciation 60.060 60,000 Total cost $7 40.200 $248.000 $7,800 F After receiving a copy of this cost report, the supervisor of ific Assembly Departinent stated. "These reports Pose are super. It makes me feel really good to see how well things are going in ary department. I can't understand After receiving a copy of this cost report, the supervisor of the Assembly Department stated. These reports why those people upstairs complain so much about the 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 match about the reports. For the last several years, the company's marketing department lins clinically failed to meet the sales goals expressed in the company's monthly budgets. For the last several years, the company's marketing department has chronically failed to meet the sales goals expres in the company's monthly budects Required: Required: 1. The company's president is uneasy about the cost repels and would like you to evaluate their usefulness to the ould like you to evaluate their usefulness to the company. 1. The company's resident is iticusyal company. . What changes. If any. should be made in the reports to give better insiefit into how well departmental supervisors are controlling costs? 2. What changes if agg shenko ell departmental supervisors controlling costs . Using Exhibit 9-8 as your guide. prepare a new performance report for the quarter. incorporating any changes you 3. Using 4 Exhibit 9- 8 as your guide incorporating any changes suggested in question (2) alive 4. How well were costs controlled for the Assembly Devan