Several years ago, Byrd Corporation developed a comprehensive budgeting system for profit planning and control purposes. While departmental supervisors have been thrilled with the system, the factory manager has expressed considerable dissatisfaction with the information being generated by the system. After receiving a copy of the below cost report, the supervisor of the Assembly 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 concerns." 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 Budget Variance Units Produced 44,000 48,000 4,000 F Variable Costs Supplies $35,640 $38,400 $2,760 F Scrap 23,400 24,000 600 F Indirect Materials 62,160 67,200 5,040 F Total variable costs $121,200 $129,600 8,400 F Fixed Wages and Salaries 48,000 48,000 OF Equipment Depreciation 36,000 36,000 OF Total fixed costs 84,000 $84,000 OF