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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

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 Static Budget
Machine Hours 15,000 20,000
Variable Costs:
Supplies $ 8,700 $ 9,300
Scrap 29,400 31,500
Indirect materials 86,600 86,600
Total Variable Costs 124,700 127,400
Fixed Costs:
Wages & Salaries 75,100 71,000
Equipment Depreciation 101,000 101,000
Total Fixed Costs 176,100 172,000
Total Costs $ 300,800 $ 299,400

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:

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

Must use format below:

Unit Price/Cost Actual Results Flexible Budget Variances Flexible Budget Sales Volume Variances Static (Master) Budget

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