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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

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.

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