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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

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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 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 Planning Results Budget Variances Machine hours 25,00 30,000 Variable costs: Supplies $6,600 $ 7,200 $ 600F Scrap 19,600 21,000 1,400 F Indirect materials 61,400 70,500 9,100F Fixed costs: Wages and salaries 66,700 64.000 2,700 W Equipment depreciation 94,000 94.000 Total cost $ 248,300 $ 256,700 $8,400 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? 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 fatled 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? Complete this question by entering your answers in the tobs 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" ir 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 fed costs are controlled and do not show whether variable costs are controlled Cost reports are offective 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 >>

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