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 15,000 20,000 Variable costs: Supplies Scrap Indirect materials Fixed costs: Wages and salaries Equipment depreciation Total cost $ 11,100 $ 11,700 $ 600 F 40,600 43,500 2,900 F 115,400 138,800 22.600 F B4,700 79,000 5,700 W 109,000 109,000 $360,800 $381,200 $20,400 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? Required: 1. The company's president is uneasy about the cost opart identify at least two reasons. 2. What kind of reports should be used to give better nicht into how well departmental supervisors we controlling costs? 3. Complete the new performance report for the quarterbated 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 Complete the new performance report for the quarter, based on Flexible Budget Performance approach. (Do not round your date calculations. Indicate the effect of each varlance by selecting for favorable, "U" for unfavorable, and "None' for no effecter variance). Input all amounts as positive values.) Westmont Corporation Assembly Department Flexible Budget Performance Report For the Month Ended March 31 Revenue and Spending Flexible Variances Budget 15,000 Activity Variances Planning Budget Actual Results 15,000 20,000 Machine-hours (9) Supplies Scrap Indirect materials Wages and salaries Equipment depreciation $ 11,100 40,600 115.400 84,700 109,000 $360,800 $ 11,700 43.500 138,000 79,000 109,000 3 381,200 Total Required 4 > (Required 2
