Several yea profit planning and the system, the information being genera rs ago, Byrd Corporation developed a comprehensive budgeting system for factory manager has expressed considerable dissatisfaction with the control purposes. While departmental supervisors have been thrilled with ted by the system. After receiving a copy of the below cost report, Department stated "I should get a fat bonus since I'm managing my costs so well this period. It makes me feel really good to see how well things are going in my department. I can't figure out why people in the executive suite have concems. the supervisor of the Assembly 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. The company's president is uneasy about the reports and would like you to evaluate their usefulness to the company. The current unit price is $9.00. What changes, if any, should be made in the reports to give better insight into how well departmental supervisors are controlling costs? Prepare a new performance report Explain why the first report was not an accurate assessment of the unit's performance. What three concerns would you bring to the attention of the company president? Assembly Department X Control Report For the Month Ended January 31 Actual 44,000 Budget Variance 48,000 Units Produced 4,000 F Variable Costs $35640 $38,400 $2,760 F 600 F Supplies Scrap Indirect Materials Total variable costs 23,400 62,160 24,000 67,200 5,040 $121,200 $129,600 8,400 F Fixed Wages and Salaries Equipment Depreciation Total fixed costs 48,000 36,000 84,000 48,000 36,000 $84,000 0 F 0 F 0 F $205,200 $213,600 8,400F Total costs