Westmont Corporation uses a comprehensive budgeting system for planning and control purposes. While departmental supervisors are happy with the system, the factory manager is not.

A report for the company's Assembly Department for March follows:

Assembly Department

Cost Report

For the Month Ended March $31$

Actual Results Planning Budget Variances

Machine$-$hours $15,00020,000$

Variable costs:

Supplies $ $9,300$ $ $9,900$ $ $600$ F

Scrap $32,20034,5002,300$ F

Indirect materials $93,800111,00017,200$ F

Fixed costs:

Wages and salaries $77,50073,0004,500$ U

Equipment depreciation $103,000103,0000$

Total cost $ $315,800$ $ $331,400$ $ $15,600$ F

After receiving this report, the supervisor of the Assembly Department stated, $$These reports are super. It makes me feel good to see how well things are going in my department. I can$$t understand why those people upstairs complain so much about the reports.$$

For the last several years, the company$$s marketing department chronically failed to meet the sales goals expressed in the company$$s monthly budgets.