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 Results	Planning Budget	Variances
Machine-hours	15,000	20,000
Variable costs:
Supplies	$ 10,500	$ 11,100	$ 600	F
Scrap	37,800	40,500	2,700	F
Indirect materials	108,200	129,000	20,800	F
Fixed costs:
Wages and salaries	82,300	77,000	5,300	U
Equipment depreciation	107,000	107,000	0
Total cost	$ 345,800	$ 364,600	$ 18,800	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 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:

Complete the new performance report for the quarter, based on Flexible Budget Performance approach.

Were costs well controlled in March?

Complete the new performance report for the quarter, based on Flexible Budget Performance approach.

Note: 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 variance). Input all amounts as positive values.

Westmont Corporation
Assembly Department
Flexible Budget Performance Report
For the Month Ended March 31
	Actual Results	Revenue and Spending Variances		Flexible Budget	Activity Variances		Planning Budget
Machine-hours (q)	15,000			not attempted			20,000
Supplies	$10,500	not attempted	not attempted	not attempted	not attempted	not attempted	$11,100
Scrap	37,800	not attempted	not attempted	not attempted	not attempted	not attempted	40,500
Indirect materials	108,200	not attempted	not attempted	not attempted	not attempted	not attempted	129,000
Wages and salaries	82,300	not attempted	not attempted	not attempted	not attempted	not attempted	77,000
Equipment depreciation	107,000	not attempted	not attempted	not attempted	not attempted	not attempted	107,000
Total	$345,800	not attempted	not attempted	not attempted	not attempted	not attempted	$364,600