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	$	10,500	$	11,100	$	600	F
Scrap		37,800		40,500		2,700	F
Indirect materials		108,200		129,000		20,800	F
Fixed costs:
Wages and salaries		82,300		77,000		5,300	U
Equipment depreciation		107,000		107,000
Total cost	$	345,800	$	364,600	$	18,800	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 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:

3. Complete the new performance report for the quarter, based on Flexible Budget Performance approach.