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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

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 25,00030,000
Variable costs:
Supplies $ 8,100 $ 8,700 $ 600 F
Scrap 26,60028,5001,900 F
Indirect materials 79,40093,00013,600 F
Fixed costs:
Wages and salaries 72,70069,0003,700 U
Equipment depreciation 99,00099,0000
Total cost $ 285,800 $ 298,200 $ 12,400 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.
3. Complete the new performance report for the quarter, based on Flexible Budget Performance approach.

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