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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

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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: Ansembly Department Cost Report For the Month Ended March 31 Actual Planning Results Budget Variancen Machine-hours 25,000 30,000 Variable costs: Supplies Scrap Indirect materials Fixed costs Wages and salaries Equipment depreciation Total cost $7,500 $ 8,100 $ 600 7 23,800 25,500 1,700 72,200 84,000 11,800 T 70,300 67,000 3,300 V 97.000 97,000 $270,800 $281,600 $10,800 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 falled to meet the sales goals expressed in the company's monthly budgets. Required: Che For the last several years, the company's marketing department has chronically failed to meet the sales goals expressed in th company's monthly budgets. Required: 1. The company's president is uneasy about the cost repctis, identify at least two reasons. 2. What kind of reports should be used to give better insight into how well departmental supervisors are controlling costs? 3. Complete the new performance report for the quarter, based on Flexible Budget Performance approach. 4. Were costs well controlled in March? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Were costs well controlled in March? O Costs were well controlled O Costs were not well controlled

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