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 Planning Results 25,000 Budget Variances 30,000 $ 7,200 22,400 $ 7,800 $ 600 F 24,000 1,600 F 68,600 79,500 10,900 F 69,100 96,060 66,000 96,000 3,100 U 0 $ 263,300 $ 273,300 $10,000 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. 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? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 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 (1.e., zero variance). Input all amounts as positive values.) Actual Westmont Corporation Assembly Department Flexible Budget Performance Report For the Month Ended March 31 Revenue and Spending Variances Flexible Results Activity Variances Planning Budget Budget Machine-hours (a) Supplies Scrap 25,000 $ 7,200 $ 700 U 22.400 2,400 U Indirect materials i 68,600 2,350 U Wages and salaries 69,100 3,100 U Equipment depreciation 96,000 None Total $263,300 S 000000 25,000 6,500 30,000 $1,300 F $ 7,800 20,000 4,000 F 0 24,000 66,250 13.250 F 0 79,500 66,000 0 None 0 66,000 96,000 0 None 96,000 254,750 $ 0F $273,300