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 ResultsPlanning BudgetVariances

Machine-hours25,00030,000

Variable costs:

Supplies$ 6,300$ 6,900$ 600F

Scrap18,20019,5001,300F

Indirect materials57,80066,0008,200F

Fixed costs:

Wages and salaries65,50063,0002,500U

Equipment depreciation93,00093,0000

Total cost$ 240,800$ 248,400$ 7,600F

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 cant understand why those people upstairs complain so much about the reports.

For the last several years, the companys marketing department has chronically failed to meet the sales goals expressed in the companys monthly budgets.

Required:

1. The companys 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?

6 cock Pro Several years ago, Westment Corporation developed a comprehensive budgeting system for pinning and control porposes White departmental supervisors have been happy with the system, the factory manager has expressed considerable desfaction with information being generated by the system A report for the company's Assembly Department for the month of March follows: y Department Cost Hort for the month Ende Marchi Actual Planning Beats Machine-hours Bot Varian 25,000 1,000 Varble costs Selles 36.100 16,000 Scrap 30,200 19,500 1,10 Indirect werials 57.100 6.00 3.2007 Fixed costs Wages and salaries 65,500 65,000 2.500 taules dereciation 9,00 200 Total cost S2000 $24.400 S. After receiving a copy of this cost report the supervisor of the Assembly Department ned. These reports are super It makes feel really good to see how well things are going in my department I can't understand why those people upite complen so much about the reports For the last several years, the company's marketing department has chronewly failed to meet the sales goals pressed in the company's monthly budget Required: 1 The company's president i 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 supervisor cooling cost 3. Complete the new performance report for the quarter based on eble Budget Performance approach 4 Were costs well controlled in March Hutorence Complete this question by entering your answers in the tabs below. Book 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 cost? 3. Complete the new performance report for the quarter, based on Flexible Budget Performance approach 4. Were costs well controlled in March? cances Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required Required The company's president is uneasy about the cost reports, identify at least two reasons. (Select the item is one of the Teasons 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 food costs are controlled and do 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 adivity Cost reports show whether feed costs and variable costs are controlled Required 2 ) References feel really good to see how well things are going in my department. Icon't understand why those people uptore complesso much about the reports For the last several years, the company's marketing department has chronically folled to meet the sales gons 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 contrating costs? 3. Complete the new performance report for the quarter, based on Rexible Budget Performance approach 4 Were costs well controlled in March Complete this question by entering your answers in the tabs below. Required Required Required Hequired What kind of reports should be used to give better insight into how well departmental supervisors are controlling costs Flex budget performance reports must be used Fed budget performance reports must be used (Required 1 Required) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 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 for unfavorable and "None" for no effect cewe variance) Input all amounts as positive values.) Plan Machine hours (0) Supplies Scrap Indre materials Wages and sales Equiment depreciation Total Westment Corporation Assembly Department Flexitie Budget Perfomance Report For the Month Ended March 31 Actual Flexible Results Budget 25.000 5 6300 10 200 57 800 65,500 93.000 $240.800