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 Actual Planning Results Budget Variances 25,000 30,000 Scrap Indirect materials Fixed costs: Wages and salaries Equipment depreciation Total cost $ 7,500 $ 8,100 $ 600 F 23,800 25,500 1,700 F 72,200 84,000 11,800 F 70,300 67,000 3,300 U 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."