Several years ago, Westmont Corporation developed a comprehensive budgeting system for planning and control purposcs. 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 typicall departmental cost report for a recent period follows Cost Report For the Month Ended Merch 31 Pianning Actual Ress Budget Machine-hours Variable cosis 45.000 Supplies Sorap Indirect matenisls 44,900 20,400 85,500 47,500 2.800 F 800 F 4500 F 30,000 70.000 Foxed costs 82.200 3,000 S 285,000 Wages and s8lares 83.000 83,000 800 F Total cost 293 500 S8.500 F After receiving a copy of this cost report, the supervisor of the Assembly Department stated, These reports are super. It makes me feel realy good to see how well things are going in my department. I can't understand why those people upstairs complairn 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 compony's monthly budgets Required: 1. The company's president is uneasy about the cost reports, what can be the reason? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for wrong answer.) cost reports 8re ineffective since budgeted costs 81 one level of activity 8re compered to actuel costs at another level of 8c vity. cost reports show whether foed costs are controlled and do not show whether vanable costs are controlled. cost reports are effective since budgeted oosts at one level of aconty are compared to actual costs at another level of activity cost reportsshow whether foed costs and variable oosts re controled. 2. What kind of reports should be used to glve better insight into how well departmental supervisors are controlling costs? OFlexible budget pertormance raports must ba used Fixed budget performance reports must be used