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 typical departmental cost report for a recent period follows:

Assembly Department Cost Report For the Month Ended March 31
	Actual Results	Planning Budget	Variances
Machine-hours		15,000		20,000
Variable costs:
Supplies	$	11,400	$	12,000	$	600	F
Scrap		42,000		45,000		3,000	F
Indirect materials		119,000		142,500		23,500	F
Fixed costs:
Wages and salaries		85,900		80,000		5,900	U
Equipment depreciation		110,000		110,000		?
Total cost	$	368,300	$	389,500	$	21,200	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.

Complete the new performance report for the quarter, based on Flexible Budget Performance approach.(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.)

***Please refer to attached photo***