This question is from a Managerial Accounting course. I posted it twice for a reason, so please don't just copy the other answer provided.

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 Planning Ra uget Variancea Machine-hours Variable costs: Supplies Scrap Indirect material Fixed costs: Wages and salaries Equipment depreciation Total cost 35,000 40,000 29,700 32,000 $2,300 F 19,500 20,000 51,800 56,000 4,200E 500 F 79,200 80, 000 60,000 60,000 800 F $240,200 $248,000 7,800 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 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 failed to meet the sales goals expressed in the company's monthly budgets. 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.) Cost reports are ineffective since budgeted costs at one level of activity are compared to actual costs at another level of a Cost reports show whether fixed costs are controled and do not show whether varable costs are Cost reports are effective since budgeted costs at one level of activity are compared to actual costs at another lovel of Cost reports show whether fixed costs and variable costs are controlled. What kind of reports should be used to give better insight into how well departmental supervisors are controlling costs? OFlexible budget performance reports must be used OFixed budget performance reports must be used 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 variance). Input all amounts as positive values.) Flexible Budget Performance Report For the Month Ended March 31 Planning Budget Actual Flexible Budget 35,000 40,000 Supplies Scrap Indirect materials Wages and salaries $29,700 19,500 51,800 79,200 60,000 S 240,200 $ 32,000 20,000 56,000 80,000 60,000 S 248,000 Total Were costs well controlled in March? Costs were well controlled Costs were not well controlled