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 31 Actual Results Planning Budget Variances Machine-hours 15,000 20,000 Variable costs: Supplies $ 9,300 $ 9,900 $ 600 F Scrap 32,200 34,500 2,300 F Indirect materials 93,800 111,000 17,200 F Fixed costs: Wages and salaries 77,500 73,000 4,500 U Equipment depreciation 103,000 103,000 0 Total cost $ 31