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 disssatisfaction 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 25,000 30,000 Variances Machine-hours $ Variable costs: Supplies Scrap Indirect materials Fixed costs: Wages and salaries Equipment depreciation Total cost 7,800 $ 8,400 $ 600 F 25, 200 27,000 1,800 F 75,800 88,500 12,700 F 71,500 68,000 3,500 U 98, 98,000 $ 278,300 $289,900 $11,600 F 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 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 Required 3 Required 4 Complete the new performance report for the quarter, based on Flexible Budget Performance approach. (Do not round calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no 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 25,000 Machine-hours (9) Planning Budget 30,000 Supplies Scrap Indirect materials 5 7,800 25,200 75,800 71,500 98,000 $ 278,300 Wages and salaries Equipment depreciation Total $ 8,400 27,000 88,500 68,000 98,000 $ 289,900