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 Resulta Budget Variances Machine-hours 25,000 30,000 Variable costs: Supplies $7,000 $3,400 600 25,200 27,000 1,800 Indirect materials 75,800 B9,500 12,700 Tixed costs: Wages and salaries 71,500 68,000 3,500 Equipment depreciation 58.000 98,000 Total cost 5278,300 $209,900 $11,600 P Serap 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 folled to meet the sales goals expressed in the company's monthly budgets. 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, identity 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 tabs 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* 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 controled Cost reports are effective since budgeted costs at one level of activity are compared to actual costs at another level of activity 2 LE LUI y present by QUUULTE LUCpu 2. What kind of reports should be used to give better insight into how well departmental supervisors are cont! 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 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 fixed costs and variable costs are controlled Required 1 Required 2 > UUC 105. Vyeon, WIELU 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 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 OFxed budget performance reports must be used Complete this question by entering your answers in the tabs below. Required Required 2 Required 3 Required 4 Complete the new performance report for the quarter, based on flexible Budget Performance approach. (Do not round your inte calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l. variance). Input all amounts as positive values.) Westmont Corporation Assembly Department Flexible Budget Performance Report For the Month Ended March 31 Actual Flexible Planning Results Budget Budget Machine-hours (9) 25,000 30,000 Supplies Scrap Indirect materials Wages and salaries Equipment depreciation Total $ 7,800 25,200 75,800 71,500 98,000 $ 278,300 $ 8,400 27,000 88,500 68,000 98,000 $ 289,900 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 tabs below. Required: Required 2 Required 3 Required 4 Were costs well controlled in March? Costs were well controlled Costs were not well controlled