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 dissatisfactlon with the information being generated by the system. A report for the company's Assembly Department for the month of March follows: After recelving 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 falled 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 quarter, based on Flexlble Budget Performance approach. 4. Were costs well controlled in March? Complete this question by entering your answers in the tabs below. The company's president is uneasy about the cost reports, identify at least two reasons. (Select " X " if the item is one of the reasons.) 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 (i,e., zero varian Input all amounts as positive values.) Frank Weston, supervisor of the Freemont Corporation's Machining Department, was visibly upset after being reprimanded for his department's poor performance over the prior month. The department's cost control report is given below: "I Just can't understand all of these unfavorable varlances," Weston complained to the supervisor of another department. "When the boss called me in, I thought he was going to give me a pat on the back because I know for a fact that my department worked morel efficiently last month than it has ever worked before. Instead, he tore me apart. I thought for a minute that it might be over the supplies that were stolen out of our warehouse last month. But they only amounted to a couple of hundred dollars, and Just look at this report. Everything is unfavorable." Direct labor wages and supplles are varlable costs; supervision and depreclation are fixed costs; and maintenance and utilitles are mixed costs. The fixed component of the budgeted maintenance cost is $20,100; the fixed component of the budgeted utilitles cost is $14,800. Required: 2. Complete the performance report that will help Mr. Weston's superiors assess how well costs were controlled in the machining department. (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 (l.e., zero variance). Input all amounts as positive values.)
