Several years ago, Shipley Corporation developed a comprehensive budgeting system for profit plannir and control purposes. While departmental supervisors have been happy with the system, the factor manager has expressed considerable dissatisfaction with the information being generated by the system. A typical departmental cost report for a recent period follows: par Cost Report For the Month Ended March 31 Planning Actual Budget Results 30,000 25,000 Machine-hours Variable costs: $ 6,900 $ 6,300 $ 600 F Supplies Scrap Indirect materials 19,500 18,200 1,300 F 66,000 57,800 8,200 F Fixed costs: Wages and salaries Equipment depreciation 63,000 65,500 2,500 U 93,000 93,000 Total cost $248,400 $240,800 S 7,600 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 3 5 6 0