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 Departent Cost Report For the Month Ended March 31 Actual Planning Results Budget Variances Machine-hours 15,000 20,000 Variable costs: Supplies $ 9,300 $ 9,900 $ 600 F Scrap 32,200 34,500 2,300 F Indirect materials 93,800 111.000 17,200 F Fixed costs! Wages and salaries 77,500 73.000 4.500 U Equipment depreciation 183,000 183,000 Total cost $315,800 $331, 400 $15,60 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 quartet, 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 Required 4 The company's president is uneasy about the cost reports, identify at least two reasons (Select 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 2 > 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 Required 1 Required 3 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required Required 4 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 zero variance). Input all amounts as positive values.) Westmont Corporation Assembly Department Flexible Budget Performance Report For the Month Ended March 31 Flexible Budget Actu Results Planning Budget 20.000 Machine-houna) 19900 Supplies Scrap Indirect materials Wages and salaries Equipe depreciation Total $ 9,300 32.200 33.800 77.500 103,000 $_315.800 $ 0.900 34.500 111.000 73.000 103.000 $ 331400