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 11 Actual Planning Results Budget 15,000 20,000 Variances Machine hours 9,900 $ 35,000 101,000 10,500 600 37,500 2.500 120,000 19.000 F Variable costs: Supplies Scrap Indirect materials Fixed costs: Wages and salaries Equipment depreciation Total cost 79,900 105,000 330,800 75,800 4,900 105,000 348,000 $17,200 5 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 vears the company's marketina department has chronically failed to meet the sales avals expressed in the Windows 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, Identity 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 conts 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 Required 2 > Required 1 Required 2 Required 3 Required 4 Complete the new performance report for the quarter, based on Flexible Budget Performance approach. (Do not round your intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (ezero variance). Input all amounts as positive values.) Westmont Corporation Assembly Department Flexible Budget Performance Report For the Month Ended March 31 Flexible Budget Actual Results Planning Budget 20.000 Machine-hours (9) 15.000 $9.900 35.000 $ 10,500 37500 120,000 101 000 Supplies Scrap Indirect materials Wages and salaries Equipment dupreciation Total 75,000 79.900 105,000 $ 330,800 105.000 $ 348 000