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 Coat Report Por the Month Inded March 31 Actual Planning Results Budget Variances Machine-hours 15,000 20.000 Variable contas Supplies $10.000 $ 11,400 $ 600 Serap 39,200 42,000 2,800 Indirect materials 111.800 133,500 21,700 T Fixed costas Wages and salaries 83,500 78,000 5,500 Equipment depreciation 100.000 108,000 Total cost $353,300 $372,900 $19,600 T 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? Proy 1 of 3 Next > 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, identify 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 food costs and variable costs are controlled Required 2 > CUS! 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 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 Complete the new performance report for the quarter, based on Flexible Budget Performance approach. (Do not found your intermediate calculations. Indicate the effect of each variance by selecting "F* for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero variance). Input all amounts as positive values.) Westmont Corporation Assembly Dopartment Flexible Budget Performance Report For the Month Ended March 31 Flexible Budget Actual Results 15,000 Revenue and Spending Variances Planning Budget 20,000 Machine-hours (0) Supplies Scrap Indirect materials Wages and salarios Equipment depreciation Total $ 10,800 39,200 111,800 83,500 108,000 $ 353,300 $ 11,400 42.000 133,500 70,000 108,000 $ 372,900 Complete this question by entering your answer Required 1 Required 2 Required 3 Required 4 Were costs well controlled in March? Costs were well controlled Costs were not well controlled