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:

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 cant understand why those people upstairs complain so much about the reports.

For the last several years, the companys marketing department has chronically failed to meet the sales goals expressed in the companys monthly budgets.

Required:

1. Complete the new performance report for the quarter, based on Flexible Budget Performance approach.
2. Were costs well controlled in March?

\begin{tabular}{|c|c|c|c|c|c|} \hline & \begin{tabular}{r} Assembly \\ Cost \\ For the Month \end{tabular} & \begin{tabular}{l} Department \\ Report \\ Ended March 31 \\ Actual \\ Results \end{tabular} & \begin{tabular}{l} Planning \\ Budget \end{tabular} & \multicolumn{2}{|l|}{ Variances } \\ \hline Machine-hours & & 25,000 & 30,000 & & \\ \hline Variable costs: & & & & & \\ \hline Supplies & & $8,400 & $9,000 & $600 & F \\ \hline Scrap & & 28,000 & 30,000 & 2,000 & F \\ \hline Indirect materials & & 83,000 & 97,500 & 14,500 & F \\ \hline Fixed costs: & & & & & \\ \hline Wages and salaries & & 73,900 & 70,000 & 3,900 & u \\ \hline Equipment depreciation & & 100,000 & 100,000 & 0 & \\ \hline Total cost & & $293,300 & $306,500 & $13,200 & F \\ \hline \end{tabular} Complete the new performance report for the quarter, based on Flexible Budget Performance approach. Note: Do not round your intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, " U " for unf "None" for no effect (i.e.. zero variance). Inout all amounts as bositive values