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 1 Actual Planning Results Budget Variances Machine hours 25,000 30,00 Variable costs Supplies $ 7,200 $ 7,800 $ 600 Scrap 22,400 24,000 1,600 Indirect materials 79,500 10,900 Fixed costs Wages and salaries 69,100 66,000 3,100 u Equipment depreciation 96.000 26.000 Total cost $263,300 $ 273,300 $10,000 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, identity 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) Required 4 The company's president is uneasy about the cost reports, Identity at least two reasons. (Select " ir the item is one of the Required: 1. The tompany'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, Identity 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 1 Required 2 > 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 Required: 1. The tompany'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: 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 " for favorablo, "U" for unfavorable, and "None" for no effect ( zero variance). Input all amounts as positive values.) Westmont Corporation Assembly Department Flexible Budget Performance Report For the Month Ended March 31 Actual Flexible Planning Results Budget Budget Machine hours (0) 25 000 30.000 Supplies $ 7,200 $ 7.800 Sarap 22.400 24 000 Indirect materials 63.600 79,500 Wages and salaries 69.100 66.000 Equipment depreciation 56.000 96.000 Total 5 263.300 5273 300 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 Were costs well controlled in March? Costs were well controlled Costs were not well controlled