Several years ago, Byrd Corporation developed a comprehensive budgeting system for profit planning and control purposes. While departmental manager has expressed considerable dissatisfaction supervisors have been thrilled with the system, the factory with the information being generated by the system. fter 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 S9.00. 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 Budget 48,000 Actual 44,000 Variance 4,000 F Units Produced Variable Costs $38,400 24,000 67,200 $129,600 $35,640 23,400 62,160 $121,200 $2,760 F Supplies Scrap Indirect Materials Total variable costs 600 F 5,040 F 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 213,600 $205,200 8,400 F Total costs