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 Machine-hours Variable costs: Supplies Scrap Indirect materials Fixed costs: wages and salaries Equipment depreciation Total cost Actual Results 15,000 Planning Budget Variances 20,000 $ 9,000 30,800 90,200 $9,600 33,000 $ 600 F 2,200 F 106,500 16,300 F 76,300 102,000 $308,300 72,000 102,000 $323,100 4,300 U 0 $ 14,800 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 failed to meet the sales goals expressed in the company's monthly budgets Check -Connect Assignment Saved Required: 1. The company's president is uneasy about the cost reports, 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 The company's president is uneasy about the cost reports, identify at least two reasons. (Select "X" if the item is one of the reasons.) Cost reports are ineffective since budgeted costs at one level of activity are compared to actual costs at another level of activity Cost reports show whether fixed costs are controlled and do not show whether variable costs are controlled Cost reports are effective since budgeted costs at one level of activity are compared to actual costs at another level of activity Cost reports show whether fixed costs and variable costs are controlled Required 2 > Help 3. Complete the new performance report for the quarter, based on Flexible But 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 What kind of reports should be used to give better insight into how well departmental supervisors are controlling costs? Flexible budget performance reports must be used Fixed budget performance reports must be used Complete this question by eistering your answers in the tabs below. Required 1- Required 2 Required 31 Required 4 Complete the new performance report for the quarter, based on Flexible Budget Performance approach. (Do not round your intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "u" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Westmont Corporations Assembly Department Flexible Budget Performance Report For the Month Ended March 31 Actual Results Machine-hours (q) 15,000 Supplies $ 9.000 Scrap 30,800 Indirect materials 90,200 Flexible Planning Budget Budget 20,000 5 9,600 33,000 106,500 Wages and salaries 76.300 Equipment depreciation 102,000 Total $308.300 72,000 102,000 $ 323.100 < Prev 4 of 5 Next > 1. The company's president is uneasy about the cost reports, identity at 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 41 Were costs well controlled in March? OCosts were well controlled Costs were not well controlled