Saved 4 eBook 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 Results 15,000 Planning Budget Variances Prim Machine-hours Variable costs: Supplies Scrap Indirect materials Fixed costs: References Wages and salaries Equipment depreciation Total cost 20,000 $ 10,800 39,000 124,500 $ 600 F 2,600 F 19,900 F $ 10,200 36,400 104,600 81,100 106,000 $ 338,300 76,000 106,000 5,100 U $356,300 $ 18,000 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. Required 1 Required 2 Required 3 Required 4 The company's president is uneasy about the cost reports, identify at least two reasons. (Select "X" if the item is one of the reasons.) Mc Graw Hill < Prev 4 of 4 Next 0 Complete this question by entering your answers in the tabs below. erences Required 1 Required 21 Required 3 Required 4 The company's president is uneasy about the cost reports, Identify at least two reasons. (Select "x" if the item is one of the reasons.) Cost reports are ineffective since budgeted costs at one level of activity are compared to actual costs at another level of activity Cost reports show whether fixed costs are controlled and do not show whether variable costs are controlled Cost reports are effective since budgeted costs at one level of activity are compared to actual costs at another level of activity Cost reports show whether fixed costs and variable costs are controlled Roged 1 Required 2 > eBook Required 1 Required 2 Required 3 Required 4 Print References Complete the new performance report for the quarter, based on Flexible Budget Performance approach. (Do not round your it calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect Input all amounts as positive values.) Westmont Corporation Assembly Department Flexible Budget Performance Report For the Month Ended March 31 Actual Results Machine-hours (q) 15,000 Supplies $ 10.200 Scrap 36,400 Indirect materials 104,600 Flexible Budget Planning Budget 20,000 10,800 39,000 124,500 Wages and salaries 81,100 Equipment depreciation 106,000 Total $ 338,300 76,000 106,000 $ 356,300 < Required 2 Required 4 >