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 15,080 20,800 Variable costs: Supplies $ 11,400 $ 12,000 $ 600 F Scrap 42,000 45,000 3,000 F Indirect materials 119,000 142,500 23,500 F Fixed costs: Wages and salaries 85,900 80,000 5,900 Equipment depreciation 110,000 110,000 Total cost 5368,300 $389,500 521,200 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 feet the sales goals expressed in the company's monthly budgets. For the last 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 The company's president i uneasy about the cost reports, identity at least two reasons. Select them one of the reasons) Cost reports are reflective srce budgold costs at one level of activity are compared to the another level of activity Gost reports show whether costre control and do not show whether variable costs are contre Cost reports are active since budged costs at one level of activity are compared to acco another level of activity Como show whether le costs and variable costs are con Net 404 . V - M N B V C 96 58 command optic 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 co 3. Complete the new performance report for the quarter, based on Flexible Budget Performance approach. 4. Were costs well controlled in March? ook 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 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 intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U* for unfavorable, and "None" for no effect (1.e., zero variance). Input all amounts as positive values.) Westmont Corporation Assembly Department Flexible Budget Performance Report For the Month Ended March 31 Flexible Budget Actual Results 15,000 Planning Budget 20.000 Machine-hours (9) Supplies Scrap Indirect materials Wages and salaries Equipment depreciation Total $ 11,400 42,000 119,000 85,900 110.000 $368,300 $ 12.000 45,000 142,500 80,000 110,000 $ 389,500